Question

Stone roses candies paid employee wages on and through friday, january 26, and the next payroll will be paid in february. there are three more working days in january (29–31). employees work 5 days a week and the company pays $1500 a day in wages. what will be the adjusting entry to accrue wages expense at the end of january?

Answer 1

The adjusting entry to be made to accrue wages expense at the end of January will be:

( Computation for the accrued salaries: 1,500 x 3 = 4,500)

Debit

Salaries and Wages Expense 4,500

Credit

Salaries and Wages Payable 4,500

 

At the next payday which is February 2, the entry would be:

Debit

Salaries and Wages Payable 4,500

Salaries and Wages Payable 3,000

Credit

Cash 7,500