Hahn Corp. has three employees. Each earns $600 per week for a five-day workweek ending on Friday. This month the last day of the month falls on a Wednesday. The company should make an adjusting entry: (Multiple Choice)

A. Crediting Wage Expense for $360 and debiting Wages Payable for $360.

B. Debiting Wage Expense for $360 and crediting Wages Payable for $360.

C. Crediting Wage Expense for $1,080 and debiting Wages Payable for $1,080.

D. Debiting Wage Expense for $1,080 and crediting Wages Payable for $1,080.

Question

Business

Matthias Hancock

20 May, 08:17

Hahn Corp. has three employees. Each earns $600 per week for a five-day workweek ending on Friday. This month the last day of the month falls on a Wednesday. The company should make an adjusting entry: (Multiple Choice)

A. Crediting Wage Expense for $360 and debiting Wages Payable for $360.

B. Debiting Wage Expense for $360 and crediting Wages Payable for $360.

C. Crediting Wage Expense for $1,080 and debiting Wages Payable for $1,080.

D. Debiting Wage Expense for $1,080 and crediting Wages Payable for $1,080.

+2

Answers (1)

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Yaritza Calderon · Answer 1

D. Debiting Wage Expense for $1,080 and crediting Wages Payable for $1,080.

Explanation:

Salary Calculation for three employees for one day = $ 600 + $ 600 + $ 600/5 = 1800/5 = $ 360

Salary for 3 days for 3 workers = $ 360 * 3 = $ 1080

Adjusting Entry would be recognizing the expense and liability for the payment of wages.

So

Wages expense will be debited with $ 1080

And wages payable would be credited with $ 1080