Question

In: Accounting

July 31, 2016, the end of the quarter, is on a Wednesday. Employees get paid each...

July 31, 2016, the end of the quarter, is on a Wednesday. Employees get paid each Friday for the week just worked. The company has five employees who earn $100 each per day. Make the Accrued Salaries Expense journal entry for Wednesday, July 31, 2016. Enter the date, accounts, debit and credit, and be sure to indent the credit line.

Solutions

Expert Solution

Since July 31, 2016 is on Wednesday
normally Employee gets paid on Friday for the week just they worked.
Since to book the expense for the month end, they should follow the accrual system.
Expense to be booked = Total number of employees * Pay per day * No of days they should get payment till Wednesday.
5*100*3
$1,500.00
Journal Entry :
Date Accounts title and explaination Debit Credit
31-07-16 Salary Expense $1,500.00
   To Accrued salary $1,500.00
(Being expense booked for the month end)
Note :
Salary expense will be treated as an expense and will be shown in Profit and loss Account.
Accrued salary is a liability account which can be set off when payment was done.
Journal entry when payment made :
Date Accounts title and explaination Debit Credit
Accrued salary $1,500.00
   To cash $1,500.00
(When payment is made )

ekkarill92 answered 9 months ago
Next > < Previous

Related Solutions

On July 31, 2016, the end of the first month of operations, Rhys Company prepared the...
On July 31, 2016, the end of the first month of operations, Rhys Company prepared the following income statement, based on the absorption costing concept: Rhys Company Income Statement - Absorption Costing For the Month Ended July 31, 2016 1 Sales (97,000 units) $4,389,250.00 2 Cost of goods sold: 3 Cost of goods manufactured $3,159,000.00 4 Less ending inventory (20,000 units) 540,000.00 5 Cost of goods sold 2,619,000.00 6 Gross profit $1,770,250.00 7 Selling and administrative expenses 281,000.00 8 Income...
Variable Costing Income Statement On July 31, 2016, the end of the first month of operations,...
Variable Costing Income Statement On July 31, 2016, the end of the first month of operations, Holton Company prepared the following income statement, based on the absorption costing concept: Sales (18,000 units) $972,000 Cost of goods sold: Cost of goods manufactured $748,000 Less ending inventory (4,000 units) 136,000 Cost of goods sold 612,000 Gross profit $360,000 Selling and administrative expenses 68,000 Income from operations $292,000 a. Prepare a variable costing income statement, assuming that the fixed manufacturing costs were $44,000...
Selected account balances before adjustment for Alantic Coast Realty at July 31, 2016, the end of...
Selected account balances before adjustment for Alantic Coast Realty at July 31, 2016, the end of the current year, are as follows: Debits Credits Accounts Receivable $ 75,000 Equipment 345,700 Accumulated Depreciation—Equipment $112,500 Prepaid Rent 9,000 Supplies 3,350 Wages Payable – Unearned Fees 12,000 Fees Earned 660,000 Wages Expense 325,000 Rent Expense – Depreciation Expense – Supplies Expense – Data needed for year-end adjustments are as follows: a. Unbilled fees at July 31, $11,150. b. Supplies on hand at July...
Selected account balances before adjustment for Alantic Coast Realty at July 31, 2016, the end of...
Selected account balances before adjustment for Alantic Coast Realty at July 31, 2016, the end of the current year, are as follows: Debits Credits (debits) Accounts Receivable $ 75,000 (debits) Equipment 345,700 (credit) Accumulated Depreciation—Equipment $112,500 (debits) Prepaid Rent 9,000 (debits) Supplies 3,350 (credit) Wages Payable – (credit) Unearned Fees 12,000 (credit) Fees Earned 660,000 (debits) Wages Expense 325,000 Rent Expense – Depreciation Expense – Supplies Expense – Data needed for year-end adjustments are as follows: a. Unbilled fees at...
Selected account balances before adjustment for Alantic Coast Realty at July 31, 2016, the end of...
Selected account balances before adjustment for Alantic Coast Realty at July 31, 2016, the end of the current year, are as follows: Debits Credits Accounts Receivable $73,600 Equipment 346,600 Accumulated Depreciation—Equipment $107,000 Prepaid Rent 8,550 Supplies 3,090 Wages Payable – Unearned Fees 11,000 Fees Earned 672,400 Wages Expense 337,500 Rent Expense – Depreciation Expense – Supplies Expense – Data needed for year-end adjustments are as follows: a. Unbilled fees at July 31, $10,250. b. Supplies on hand at July 31,...
Selected account balances before adjustment for Alantic Coast Realty at July 31, 2016, the end of...
Selected account balances before adjustment for Alantic Coast Realty at July 31, 2016, the end of the current year, are as follows: Debits Credits Accounts Receivable $ 75,000 Equipment 345,700 Accumulated Depreciation—Equipment $112,500 Prepaid Rent 9,000 Supplies 3,350 Wages Payable – Unearned Fees 12,000 Fees Earned 660,000 Wages Expense 325,000 Rent Expense – Depreciation Expense – Supplies Expense – Data needed for year-end adjustments are as follows: a. Unbilled fees at July 31, $11,150. b. Supplies on hand at July...
If the salary is paid at the end of the year, how much will John get?...
If the salary is paid at the end of the year, how much will John get? 1. He can keep his current job at the management firm D&L. His annual salary at the firm is $65,000 per year and is salary is expected to increase at 3% per year until retirement. He is currently 28 years old and he expects to work for 40 more years. His current job includes a full paid health insurance plan and is current average...
If Sven Company pays employees each Wednesday for the weekly pay period ending the previous Friday,...
If Sven Company pays employees each Wednesday for the weekly pay period ending the previous Friday, and an entry is made each Friday to accrue the payroll for that week, the journal entry to record on payday (Wednesday) would involve a debit to: Question 8 options: a) Wage Expense. b) Wages Payable. c) Cash. d) Cash Expense. e) None of these. On August 1, supplies were purchased. Supplies were debited and Accounts Payable credited for $2,500. $700 of these supplies...
A loan is to be repaid in end of quarter payments of $1,000 each, with there...
A loan is to be repaid in end of quarter payments of $1,000 each, with there being 20 end of quarter payments total. The interest rate for the first two years is 6% convertible quarterly, and the interest rate for the last three years is 8% convertible quarterly. Find the outstanding loan balance right after the 6th payment.
Perpetuity A pays $100 at the end of each year. Perpetuity B pays $25 at the end of each quarter.
Perpetuity A pays $100 at the end of each year. Perpetuity B pays $25 at the end of each quarter. The present value of perpetuity A at the effective rate of interest is $2,000. What is the present value of perpetuity B at the same annual effective rate of interest i?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT