Why Choose Us?
0% AI Guarantee
Human-written only.
24/7 Support
Anytime, anywhere.
Plagiarism Free
100% Original.
Expert Tutors
Masters & PhDs.
100% Confidential
Your privacy matters.
On-Time Delivery
Never miss a deadline.
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. 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.
Expert Solution
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) |
Archived Solution
You have full access to this solution. To save a copy with all formatting and attachments, use the button below.
For ready-to-submit work, please order a fresh solution below.
