Question

Stan Still Stationery Store's employees are paid every Friday for a five day work week and are paid a total of $1,650 per day. If December 31, 2019, is on a Tuesday, the amount of the adjusting entry for accrued wages is:

Multiple Choice

• $3,300

• $6,600

• $4,950

• $8,250

Answer 1

Solution:

As per the information given in the question

a.wages are paid every Friday for a five day work week and

b.are paid a total of $1,650 per day.

If the December 31, 2019 is on a Tuesday, it implies that as on the last day of the financial year wages are accrued for two days i.e., Monday and Tuesday.

Thus amount of wages accrued as on December 31, 2019 = Wages paid per day * No. of days for which wages are accrued.

= $ 1,650 * 2 days

= $ 3,300

Thus the amount of the adjusting entry for accrued wages is = $ 3,300

The solution is option 1 = $ 3,300

The amount of adjusting entry for accrued wages is

Wages Expense a/c. Dr.            $ 3,300

                         To Accrued Wages a/c.             $ 3,300