Sullivan Lighting pays their employees on the last day of each month. Graham Music pays their employees every other Friday. When creating their financial reports on Wednesday, August 31, 2022, the accountant at Graham Music records wages payable, whereas the accountant at Sullivan Lighting does not. Why?

Question

Ulises Adams

Business

22 July, 15:35

Sullivan Lighting pays their employees on the last day of each month. Graham Music pays their employees every other Friday. When creating their financial reports on Wednesday, August 31, 2022, the accountant at Graham Music records wages payable, whereas the accountant at Sullivan Lighting does not. Why?

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Answers (1)

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Elaina · Answer 1

Answer: Graham Music still owes wages, while Sullivan lighting has paid all its employees.

Explanation: From the question, we can see that Graham music pays their employees every other Friday, and the last day of the month was Wednesday, therefore, while closing the account for the month, it should be noted under "wages payable" because the employees are yet to be paid for that week, in essence, Graham music is owing, and the employees will be paid on the second of September, which is a Friday.

On the other hand, Sullivan Lighting pays their employees on the last day of the month, so there won't be a need to input that under "wages payable", since they would not be owing wages to their employees on the last day of the month.