Question

Mason has a Mason Painting Services has a weekly payroll of $28,000. December 31 fails on Wednesday and Mason will pay its employees following Monday (January 5) for the previous full week. Assume that Mason has a five - day workweek and has an unadjusted balance in Salaries Expense of $790,000. What amount should be debited to Salaries Expense on December 31?
A $790,000
B. $11.200
C $28,000
D, $16,000

Answer 1

Answer:

The answer is: Mason should debit salaries expense by $16,800 on December 31

Explanation:

We can determine the daily payroll for Mason Painting Services:

daily payroll = 28000 / 5 days = $5,600

Mason's employees worked for last 3 days of the year, so we just multiply the daily payroll by 3 days:

Dr salaries expense = $5,600 per day x 3 days = $16,800