Question

ABC company employs two people who are rostered over a seven-day working week. The employees are paid fortnightly up to and including the day of payment. There are no penalty wages.

Transactions for the month of July 2019 are followed:

7 July Paid wages (ignore PYAG tax) $1,777.00

21 July Paid wages (ignore PAYG tax) $1,692.00

Required:

1. Please record above transactions on General Journal

2. Record the end of the month balance day adjustment in the General Journal

Answer 1

1.

Date	Accounts	Debit	Credit	Working
July 7	Wages Payable	$     888.50		$1,777 * 7 / 14
	Wages Expense	$     888.50		$1,777 * 7 / 14
	Cash		$ 1,777.00
	(Wages paid)
July 21	Wages Expense	$ 1,692.00
	Cash		$ 1,692.00
	(Wages paid)

2.

Date	Accounts	Debit	Credit	Working
July 31	Wages Expense	$ 1,208.57		$1,692 * 10 / 14
	Wages Payable		$ 1,208.57
	(Provision for Wages Payable)