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    diegoarguello's Avatar
    diegoarguello Posts: 1, Reputation: 1
    New Member
     
    #1

    Jun 25, 2009, 12:50 PM
    Accrual Wages
    This is an Adjusting Entries problem:

    The following information relates to December 31 accounting adjustments for Happy Print Company. The firm's fiscal year ends on December 31.

    The question states: "Weekly salaries for a five-day week total $1,800, payable on Fridays. December 31 of the current year is a Tuesday."

    What's the journal entry?

    This is what I figured: Debit Wage Expense of $360 (1,800/5) AND Credit Wages Payable for $360.

    Is that right?
    rehmanvohra's Avatar
    rehmanvohra Posts: 739, Reputation: 27
    Senior Member
     
    #2

    Jun 30, 2009, 11:22 AM

    The question states: "Weekly salaries for a five-day week total $1,800, payable on Fridays. December 31 of the current year is a Tuesday."
    A week is of 7 days although the staff work for five days per week. Here the salary will be accrued from Saturday to Tuesday, that is 4 days. (8100/7) x 4 =1028.57
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
     
    #3

    Jul 3, 2009, 02:56 AM

    Where is the assumption that the work week is Saturday through Wednesday, thereby making Tuesday the 4th day of the work week?

    Most work weeks are Monday through Friday, making Tuesday the 2nd day of the period. 2 days are accrued.

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