Question

Pablo Management has five employees, each of whom earns $250 per day. They are paid on Fridays for work completed Monday through Friday of the same week. Near year-end, the five 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. View transaction list Journal entry worksheet < 2 1 Record the year-end adjusting entry for wages expense. Note: Enter debits before credits Date General Journal Debit Credit December 31 Record entry Clear entry View general journal

Answer 1

Answer: 1.) Last day of the year was monday and workers worked that day. Payment day is friday which will be next year, so, morday's wage enfense are accrued ! Journal entry Wages enfense --Dr 1250 Towages Payable 1 Note - wage enpense = $2.50 x 5 employees 9 $1250 1250

2.) when Payment of wages will made on Friday, Janu; it will includs I day payment of previous year and enclude I day payment of Tuesday because it is an unpaid holiday Journal Entry- Jan4 wages expense. -D8 3750 wages Payable--nordr 1250 To Cash Alc sorro (Being Cash paid for 4 day work) Note - Weges erbense of current year - $250 x 5 employees, 3 days $3750

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