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?

Question

Business

Elise

20 November, 07:39

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?

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Stephanie Liu · 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