Question

Sanborn Company has 10 employees, who earn a total of $2,100 in salaries each working day. They are paid on Monday for the five-day workweek ending on the previous Friday. Assume 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 1

Answer:

Journal entry to record accrued wages on December 31, 202x

Dr Wages expense 1,260

    Cr wages payable 1,260

Journal entry to record wages expense on Friday, January 2

Dr Wages expense 840

    Cr wages payable 840

Journal entry to record payment of wages on Monday, January 5

Dr Wages payable 2,100

    Cr Cash 2,100