Ask Question
23 June, 01:59

The company has 15 employees, who earn a total of $1,960 in salaries each working day. They are paid each Monday for their work in the five-day workweek ending on the previous Friday. Assume that December 31, 2015, is a Tuesday, and all 15 employees worked the first two days of that week. Because New Year's Day is a paid holiday, they will be paid salaries for five full days on Monday, January 6, 2016. Use the information to prepare adjusting entries as of December 31, 2015.

+2
Answers (1)
  1. 23 June, 02:45
    0
    Preparation of the adjusting entries as of December 31, 2015.

    Dr Salaries Expense 3,920

    Cr Salaries Payable 3,920

    Explanation:

    Since we were been told in the question that all the 15 employees worked the first 2 days of that week, the Adjustment we therefore be $3,920 (1,960*2). And the transaction will be recorded as:

    Dr Salaries Expense 3,920

    Cr Salaries Payable 3,920

    The Adjustment will be:

    1,960 x 2 = 3,920

    Therefore the pay that occured in New Year's Day will not be used because it falls in the next year.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The company has 15 employees, who earn a total of $1,960 in salaries each working day. They are paid each Monday for their work in the ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers