help in homework

New User?

Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / A manufacturing company's weekly payroll is $80,000 for a 5-day work week beginning each Monday and ending each Friday

A manufacturing company's weekly payroll is $80,000 for a 5-day work week beginning each Monday and ending each Friday

Finance

A manufacturing company's weekly payroll is $80,000 for a 5-day work week beginning each Monday and ending each Friday. The last time salaries and wages were recorded was Friday, December 26. What adjustment is needed on December 31, the last day of the company's fiscal period?

a. No adjustment is necessary since the next payday will not occur until the following year.

b. Decrease cash by $48,000.

c. Increase wages expense by $48,000.

d. Decrease wages payable by $48,000.
 

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

Answer:

C. Increase wage expenses by $ 48000

As

On 31st December it will be Wednesday and next payment is to be made on Friday that is 2nd January so Company will record accrued wages on 31st December for this following journal entry will be passed

Wages expense for three days = $80000 x 3/5 = $48000

Date Accounts Debit Credit
December 31 Wages Expense $ 48,000  
  Wages Payable   $ 48,000
  (To record wages expense for three months)    

Sitejabber (5.0)

BBC (5.0)

Trustpilot (4.9)

Google (5.0)