A company pays its employees at the end of the day each Friday for work done during the five-day work week from Monday through Friday. Wages are consistently $2,500 for each week. In the current year, December 31 fell on a Thursday. What adjusting entry is necessary on December 31?

Question

Business

Chaz Preston

13 January, 01:03

A company pays its employees at the end of the day each Friday for work done during the five-day work week from Monday through Friday. Wages are consistently $2,500 for each week. In the current year, December 31 fell on a Thursday. What adjusting entry is necessary on December 31?

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Answers (1)

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Londyn Williamson · Answer 1

The adjusting entry would be

Wages expense A/c Dr $2,000

To Wages payable A/c $2,000

(Being the wages are adjusted)

Since the total wages per week is $2,500 and December 31 fell on a Thursday. So the wages which are paid from Monday to Thursday would be

= Wages per week * number of days : total number of days in a week

= $2,500 * 4 days : 5 days

= $2,000