Question

In: Accounting

Maple Park Senior Center has a weekly payroll of $15,000. December 31 falls on Wednesday, and...

Maple Park Senior Center has a weekly payroll of $15,000. December 31 falls on Wednesday, and Maple Park Senior Center will pay its employees the following Monday (January 5) for the previous full week. Assume Maple Park Senior Center has a five-day workweek and has an unadjusted balance in Salaries Expense of $600,000.

Requirements

  1. Record the adjusting entry for accrued salaries on December 31.
  2. Post the adjusting entry to the accounts involved and show the balances after adjustments.
  3. Record the journal entry for payment of salaries made on January 5.

Solutions

Expert Solution

For 5 days work total salaries expense = 15,000

Since, December 31 is Wednesday, there is 3 days ( Monday + Tuesday + Wednesday ).

Salary expense for each day = 15,000 / 5 = 3,000 $ per day.

Salaries expense for 3 days = 3,000*3 = 9,000 $

This 9,000 $ is accrued for the year ended 31 December.

ekkarill92 answered 1 year ago
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