In: Accounting
Sanborn Company has 10 employers, who earn a total of $2,400 in salaries each working day. they are paid on monday for the five day workweek ending on the previous friday
I think below is the question since you have not pasted the completed question and I have the similar question available with me | |
Sanborn Company has 10 employers, who earn a total of $2,400 in salaries each working day. they are paid on monday for the five day workweek ending on the previous FridayAssume that year ended December 31, is a Wednesday and all employees will be paid salaries for five full days on the following Monday. The adjusting entry needed on December 31 is: | |
Answer is | |
Since the year ended on Wednesday, 3 day salaries from Monday to Wednesday need to be accrued as they are related to that year | |
3 days salary would be = 2,400*3 | 7,200.00 |
Entry would be | |
Salaries expense Dr 7,200 | |
To Salaries payable CR 7,200 | |