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15 February, 21:04

Nash's Trading Post, LLC employs a 5-day workweek and a September 30 year-end. Normal weekly wages amount to $26640. If September 30 ends on a Wednesday, what is the appropriate journal entry at fiscal year-end?

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  1. 15 February, 21:05
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    Debit Wages expense $15,984

    Credit Accrued wages $15,984

    Explanation:

    Given that the week ends on Friday, however the fiscal year end is September 30 which is a Wednesday. It means that the weekly wage of 3 days would be accrued.

    If the weekly (5-day) wage is $26640

    Then wage for 3 days

    = 3/5 * $26640

    = $15,984

    Therefore, the entries required

    Debit Wages expense $15,984

    Credit Accrued wages $15,984

    Being entries to accrue for wages incurred as at end of the fiscal year.
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