Pablo Management has two employees, each of whom earns $120 per day. They are paid on Fridays for work completed Monday through Friday of the same week. Near year-end, the two 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.

Question

Johnathon Hunter

Business

7 April, 12:30

Pablo Management has two employees, each of whom earns $120 per day. They are paid on Fridays for work completed Monday through Friday of the same week. Near year-end, the two 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.

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Chad Rose · Answer 1

December 31:

To record accrued wages for one day : (2 workers * $120) = $240

January 4:

To record accrued and current wages.

Wages expenses = 2 workers * 3 days * $120 = $720

Cash = 2 workers * 4 days * $120 = $960

Balance=$240

1.) December 31

Wages expenses $240

Wages payable $240

2.) January 4 General Journal

Wages payable $240 (Debit)

Wages expenses $720 (Credit)

Cash $960