A company pays each of its two office employees each friday at the rate of $200 per day for a five-day week that begins on monday. If the monthly accounting period ends on tuesday and the employees worked on both monday and tuesday, the month-end adjusting entry to record the salaries earned but unpaid is:

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15-09-2018
Business

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A company pays each of its two office employees each friday at the rate of $200 per day for a five-day week that begins on monday. If the monthly accounting period ends on tuesday and the employees worked on both monday and tuesday, the month-end adjusting entry to record the salaries earned but unpaid is:

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andromache andromache · Answer 1 · 2018-09-27T12:38:00+02:00

Adjusting entry for wages:

It is given that the company pays each of its two office employees each Friday at the rate of $200 per day for a five-day week that begins on Monday. The monthly accounting period ends on Tuesday and the employees worked on both Monday and Tuesday

It means the adjustment of wages need to be done for 2 days wages = 2days * 2 workers *$200 per day = $800

The month-end adjusting entry to record the salaries earned but unpaid is as follows:

Salaries Expense Debit $800

Salaries Payable Credit $800