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    libraronit74's Avatar
    libraronit74 Posts: 1, Reputation: 1
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    #1

    Sep 29, 2009, 02:24 PM
    Adjusting wages entries
    Erwin Press pays wages of $6,000 every Friday for a five-day workweek. June 30, the last day of the fiscal year, falls on a Tuesday. In the journal provided, prepare the June 30 adjusting entry as well as the July 3 follow-up entry when the wages are paid.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Sep 30, 2009, 07:00 AM

    You have to acrue wages for earned, but not yet paid at the end of the accounting period.

    You have to acrue wages earned for Monday and Tuesday.

    The journal entry is to Debit Wages Expense for the amount of 2 days wages and credit Wages Payable for the amount.

    When you actually pay the wages the journal entry will be:
    Debit Wages Expense for 3 days of wages (Wednesday, Thursday and Friday) for the amount.
    Debit Wages Payable for 2 days of wages (Monday and Tuesday) for the amount
    Credit Cash or other appropriate account for the total amount.
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