The company wages expense is paid every 20. With a total of 20 casual employees, the...

The company wages expense is paid every 20. With a total of 20 casual employees, the daily wage expense is Rp.4,000,000. Wages for working days after the 20th, paid on the 20th of the following month. The remaining workdays after payment of wages on October 20 are 6 days.

Make adjusting entries to be made for the preparation of the monthly financial statements as of October 31, 2015 for the transaction!

Solutions

Expert Solution

Wages payable refers to the wages that a company's employees have earned, but have not yet been paid. Under the accrual method of accounting, this amount is likely recorded with an adjusting entry at the end of the accounting period so that the company's balance sheet will include the amount as a current liability.

In this case, the company is paying wages expense on 20th of every month.

Daily wage expense for employees is Rp. 4,000,000.

Remaining work days after 20th October payment of wage expense is 6 days.
Therefore, while preparing monthly financial statements, it is necessary to make adjusting entry for wages expenses for 6 days remaining in the month October which is still to be paid.

Wages payable in the month of October is Rp. 4,000,000 × 6 days

That is Rp. 24,000,000

Hence the adjusting entry to be made is,

Wages Expense Dr. 24,000,000
Wages Payable 24,000,000
(To accrue wages earned in October but paid in November)

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Stone Corporation has 25 employees and incurs total wages and salaries expense of $900,000 per year....

Stone Corporation has 25 employees and incurs total wages and salaries expense of $900,000 per year. The following table shows various payroll amounts as a percentage of this annual wage and salaries expense: In addition, Stone provides group health insurance for its entire workforce. The cost of this insurance is $350 per month per employee. Workers compensation insurance 5 % Social security and Medicare (employees' share and employer's share combined) 15.3 % Pension and other postretirement costs expense (paid by...

The 3.8% additional Medicare surtax is paid by employees on their wages in excess of $250,000...

The 3.8% additional Medicare surtax is paid by employees on their wages in excess of $250,000 MFJ ($200,000 Single, $125,000 MFS), while the 0.9% additional Medicare tax is paid on the lesser of net investment income or modified adjusted gross income (MAGI) over certain threshold amount (MFJ $250k, MFS $125k, Single $200k). True False

Net wages of 24,000 are paid to employees. Which account is debited? Select one: a. Cash...

Net wages of 24,000 are paid to employees. Which account is debited? Select one: a. Cash b. Net wages control A business invoices customers for fees, giving credit of 30 days. Which account is the debit entry posted to? Select one: a. Accounts receivable b. Accounts payable A telephone bill is received by the business for 500. Which account is the debit entry posted to? Select one: a. Telephone expense b. Accounts payable A deposit of 1,500 is received from...

Casual Shoe Company makes loafers. During the most recent year, Casual incurred total manufacturing costs of...

Casual Shoe Company makes loafers. During the most recent year, Casual incurred total manufacturing costs of $18,500,000. Of this amount, $2,800,000 was direct material used and $10,800,000 was direct labor. Beginning balances for the year were Direct Materials, $800,000; Work-in-process Inventory, $600,000; and Finished Goods Inventory, $700,000. At the end of the year, balances were direct materials, $700,000; Work-in-process inventory, $1,600,000; and Finished goods inventory, $590,000. Requirement 1. Analyze the inventory accounts to determine the cost of direct materials purchased...

Calculate The total amount paid to employees for a certain period.Payroll Breakin Away Company has three...

Calculate The total amount paid to employees for a certain period.Payroll Breakin Away Company has three employees-a consultant, a computer programmer, and an administrator. The following payroll information is available for each employee: Consultant Computer Programmer Administrator Regular earnings rate $2,710 per week $32 per hour $42 per hour Overtime earnings rate Not applicable 1.5 times hourly rate 2 times hourly rate Number of withholding allowances 3 2 1 For the current pay period, the computer programmer worked 60 hours...

Francisco Company has 20 employees, each of whom earns $2,900 per month and is paid on...

Francisco Company has 20 employees, each of whom earns $2,900 per month and is paid on the last day of each month. All 20 have been employed continuously at this amount since January 1. On March 1, the following accounts and balances exist in its general ledger: FICA—Social Security Taxes Payable, $7,192; FICA—Medicare Taxes Payable, $1,682. (The balances of these accounts represent total liabilities for both the employer's and employees' FICA taxes for the February payroll only.) Employees' Federal Income...

Adjusting Journal Entries (AJE’s): 1. Wages earned by employees during December (’17) and to be paid...

Adjusting Journal Entries (AJE’s): 1. Wages earned by employees during December (’17) and to be paid in January (’18) are $35,875; associated payroll taxes on these wages are $2,910. (Record in two separate adjusting entries. The payroll taxes are an expense to the company for unemployment benefits and recorded as a payable to the state & federal taxing authority.) 2. The Unearned Consulting Revenue account has a balance of $261,220 as of December 31, 2017. On May 1,2017 a client...

Create the general journals for these transactions: 6 June 6 Paid $12,000 wages owed to employees...

Create the general journals for these transactions: 6 June 6 Paid $12,000 wages owed to employees for work conducted in May. 7 June 7 Received a $5,000 rent payment for the full month of June (again tenants were late and should have paid on June 1). 8 June 8 Purchased property C with $220,000 cash. 9 June 9 Received $6,000 cash for consulting conducted in May. 10 June 10 Paid $500 for utilities that were invoiced in, and expensed in,...

RoofCo reports total book income before taxes of $20 million and a total tax expense of...

RoofCo reports total book income before taxes of $20 million and a total tax expense of $8 million. FloorCo reports book income before taxes of $30 million and a total tax expense of $12 million. The companies’ breakdown between current and deferred tax expense (benefit) is as follows. Decision Making Communications RoofCo FloorCo Current tax expense $10.0 $13.0 Deferred tax benefit (2.0) (1.0) Total tax expense $8.0 $12.0 RoofCo’s deferred tax benefit is from a deferred tax asset...

SUTA and SITW: are paid by employees only are subject to different rules/rates for every state...

SUTA and SITW: are paid by employees only are subject to different rules/rates for every state are paid by employers only are subject to the same rules/rate for every state are paid by both employers and employees

Subjects