Each Friday, Laughter pays employees for the current week's work. The amount of the weekly payroll is $7,000 for a five-day workweek. This year December 31 falls on a Wednesday.

Each Friday, Laughter pays employees for the current week's work. The amount of the weekly payroll is $7,000 for a five-day workweek. This year December 31 falls on a Wednesday.

So assuming the work week is a standard nine to five day, 40 hour week beginning on a Monday, the company will accrue 3 days pay

Work week days is 5 days
Weekly payroll- 7000 $
End day -Friday

Three days we need to be accrued

=7000/5*3=4200 $

Journal entry to pass on 31 December is

Dr Salary/wages 4200
Cr Accrued Exp 4200

The Debit entry willl be to Salaries and/or Wages Expense.
The Credit entry will be to Salaries and/or Wages Payable.

Work week days is 5 days
Weekly payroll- 7000 $
End day -Friday

Three days we need to be accrued

=7000/5*3=4200 $

Journal entry to pass on 31 december is

Dr Salary/wages 4200
Cr Accrued Exp 4200

Yes