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    bilbo145's Avatar
    bilbo145 Posts: 3, Reputation: 1
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    #1

    Apr 25, 2011, 05:04 AM
    Accounting Question Regarding Wages Payable
    Company b pays every 2nd Friday for the previous fortnight. Pay Period runs from Friday to Thursday (10 working days) Payroll is 39000 per fornight the first payday this month is the 7th January

    This is the month Ending 31st Janruary 2011
    At the 31st December Wages Payable was 23,400

    WHat are all the journal entry and amounts please?
    smoothy's Avatar
    smoothy Posts: 25,490, Reputation: 2853
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    #2

    Apr 25, 2011, 05:07 AM


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    bilbo145's Avatar
    bilbo145 Posts: 3, Reputation: 1
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    #3

    Apr 25, 2011, 05:18 AM
    OK so what I have so far is this
    Wages payable dr 23400
    Cab cr 23400 (That was the balance last month

    Now I have paid the employee's twice
    So I have
    Wages expensedr 39000
    Cab cr 39000

    THat happened on the 7 and 21st (paid every 2 weeks
    So now my last entry would be
    Wages expense 39000
    Wages payable 39000
    That's for the 21st onwards would this be correct?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #4

    Apr 25, 2011, 06:28 AM

    In your problem you are only paying your employees once, on Jan 7.

    Your journal entry will be:
    Debit Wages Payable for 23,400
    Debit Wages Expense for the difference
    Credit Cash for the total amount paid
    bilbo145's Avatar
    bilbo145 Posts: 3, Reputation: 1
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    #5

    Apr 25, 2011, 06:57 AM
    Comment on pready's post
    No they will be paid more than once that is not right
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #6

    Apr 25, 2011, 09:43 AM

    In your problem you are doing the journal entry for Jan 7, nothing else.

    If you do a journal entry for Jan 21(the next payday) the journal entry will be:
    Debit Wages Expense for the amount earned.
    Credit Cash for the amount paid.
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