Question

Assume that the weekly payroll of Blank Canvas Art Supply is $330. December​ 31, end of the​ year, falls on​ Tuesday, and Blank Canvas will pay its employee on Friday for the full week. What adjusting entry will Blank Canvas make on​ Tuesday, December​ 31?​ (Use five days as a full​ workweek.)

Answer 1

Explanation:

The adjusting entry is shown below:

On December 31

Salaries expense A/c $132

                  To Salaries payable A/c $132

(Being salary is adjusted)

The salaries expense is computed by

= Total five days × number of days ÷ total number of days

= $330 × (2 ÷ 5)

= $132

The two days includes Monday and Tuesday so we considered only 2 days out of 5 days