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Albury Ltd pays management on a monthly basis and staff on a fortnightly basis. Payroll is processed and paid on the 1st of each month for management, and the 1st and 15th of each month for staff. Gross management salaries per month are $400 000 (less $190 000 tax). Gross staff wages per month are $600 000 (less $300 000 tax), and paid in equal instalments on the 1st and 15th of each month. Tax is remitted on the 15th of the following month.
Required
Prepare journal entries for January payroll.
1 Jan
Wages expense Dr 300 000
Salaries expense Dr 400 000
Accrued payroll Cr 340 000
Bank Cr 360 000
(Payroll for first half of Jan, net salary and wages $210 + $150)
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