Question

Every Friday, Neil pays weekly wages of $15,000 to his workers for a five-day week which ends on that day. Assuming that the fiscal period ends on a Tuesday, the adjusting entry for accrual of wages recorded by Neil is:

Select one:

a. debit to Wages Expense for $10,000, credit to Drawing for $10,000.

b. debit to Wages Expense for $6,000, credit to Wages Payable for $6,000.

c. debit to Drawing for $6,000, credit to Wages Payable for $6,000.

d. debit to Wages Payable for $15,000, credit to Wages Expense for $15,000.

e. debit to Accrued Wages for $5,000, credit to Wages Payable for $5,000.

Answer 1

Answer -

Step - (1) - Information Given -

Every Friday, Neil pays weekly wages of $15000 to his workers for a five-day week which ends on that day.

.

Step - (2) - The adjusting entry necessary at the end of the fiscal period ending on Tuesday is -

General Journal	Debit ($)	Credit ($)
Wages Expense [($15000 / 5 days) * 2 days] Wages Payable	6000 -	- 6000

Hence, Option - (b) is Correct.