[lpngu3]

Hi
I have this question which I'm stuck on

Staff works a 14 day fortnight and are paid on the 15th day
15-Jun Staff Wages $1279
29-Jun Staff Wages $1279

So I drew up a timeline and figured out that staff will be paid on the 30th of jun, not 29th. Therefore, in this case, it means that business is paying wages earlier than the due date, so wages here will be classified as prepaid wages expense where expense paid in advance but not yet to be consumed (CA)

However, my assignment gives accrued staff wages vs staff wages expense

:confused: so please help

[morgaine300]

You're over-analyzing.

The dates they're giving is the period covered by the pay, not the date they're paying it. i.e. the period covered is through the 29th and will be paid on the 30th. So, yes, it is an accrual.

Never seen prepaid salaries in my life. A company might give an advance on a salary, but that's a loan.