Ask Experts Questions for FREE Help !
Ask
    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.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Social security wages, medicare wages [ 3 Answers ]

Hi, I am an international student in the US on F-1 visa. I have filed federal tax returns twice and NY state tax returns once preciously. Both times my W-2 did not show social security wages or medicare wages (and the tax withheld for each of these). However, this year my W-2 shows figures on...

Medicare wages and Social Security Wages [ 4 Answers ]

Hello All, Does any one know the difference between medicare wages and Social security wages vs total wages? ( on w-2 form)

State wages differ from federal wages on W2 [ 1 Answers ]

On my W2 Box #1 which lists "wages, tips, other comp. is a different number from box #16 which lists state wages, tips, etc. On my state tax return, which do I list as my wages?

View more questions Search