Ask Question
11 May, 07:30

Pablo Management has ten employees, each of whom earns $100 per day. They are normally paid on Fridays for work completed Monday through Friday of the same week. Near year-end, the ten employees worked Monday December 31 and Wednesday through Friday, January 2, 3, and 4. New Year's Day (January 1) was an unpaid holiday. Prepare the year-end adjusting entry for wages expense and record payment of the employees' wages on Friday January 4.

+2
Answers (1)
  1. 11 May, 07:37
    0
    Year end adjusting entry:

    Debit Credit

    Salaries expense $1,000

    (10*100)

    Salaries payable $1,000

    January 4, journal entry:

    Debit Credit

    Salaries expense $3,000

    (10*100*3)

    Salaries payable $1,000

    Cash $4,000

    (10*100*4)

    Explanation:

    The year end adjusting entry that shall be recorded by the Pablo management in its accounts on December 31 in respect of salaries expenses is given as follows:

    Debit Credit

    Salaries expense $1,000

    (10*100)

    Salaries payable $1,000

    The journal entry that shall be recorded by the Pablo management in its accounts on January 4 in respect of salaries paid to employees is given as follows:

    Debit Credit

    Salaries expense $3,000

    (10*100*3)

    Salaries payable $1,000

    Cash $4,000

    (10*100*4)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Pablo Management has ten employees, each of whom earns $100 per day. They are normally paid on Fridays for work completed Monday through ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers