Question

Pablo Management has two employees, each of whom earns $220 per day. They are paid on Fridays for work completed Monday through Friday of the same week. Near year-end, the two employees worked Monday, December 31, and Wednesday through Friday, January 2, 3, and 4. New Year’s Day (January 1) was an unpaid holiday.

Prepare the year-end adjusting entry for wages expense qnd record payment of the employees’ wages on Friday, January 4.

Pablo Management has two employees, each of whom eams $220 per day. They are paid on Fridays for work completed Monday through Friday of the same week. Near year-end, the two employees worked Monday, December 31, and Wednesday through Friday, January 2, 3, and 4. New Year's Day (January 1) was an unpaid holiday. Prepare the year-end adjusting entry for wages expense and record payment of the employees' wages on Friday, January 4

Answer 1

Answer :-

1.Record the year-end adjusting entry for wages expense:-

Wages Expense a/c Dr $440

To Wages Payable A/c $440

( 2 * $220 = $440)

2. Record payment of the employees' wages on Friday, January 4 :-

Wages Payable a/c Dr $440

Wages Expense a/c Dr $1,320

To Cash A/c $1,760

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