Question

Merando industries employs a five-day workweek and a september 30 year-end. normal weekly wages amount to $35,000. if september 30 ends on a wednesday, what is the appropriate journal entry on october 2, the next payday for merando?

Answer 1

The journal entry to be made to accrue wages expense at September 30 would be:

(Computation for the accrued salaries: 35,000/5 = 7,000 x 3 = 21,000)

 

Debit

Salaries and Wages Expense 21,000

 

Credit

Salaries and Wages Payable 21,000

 

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

Debit

Salaries and Wages Payable 21,000

Salaries and Wages Expense 14,000

 

Credit

Cash 35,000