Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Accounting Help Pablo Management has six part-time employees, each of whom earns

ID: 2380253 • Letter: A

Question

Accounting Help
Pablo Management has six part-time employees, each of whom earns $220 per day. They are normally paid on Fridays for work completed Monday through Friday of the same week. They were paid in full on Friday, December 28, 2013. The next week, the six employees worked only four days because New Year Accounting Help
Pablo Management has six part-time employees, each of whom earns $220 per day. They are normally paid on Fridays for work completed Monday through Friday of the same week. They were paid in full on Friday, December 28, 2013. The next week, the six employees worked only four days because New Year

Explanation / Answer

he worked one day (December 31) so the entry is:

Debit Salary Expense $1320 - calculated as 6 X $220
Credit Salaries Payable $1320

(b) the journal entry that would be made to record payment of the employees' wages on Friday, January 4, 2014

Debit Salary Expense $3,960 - Calculated as 6 X $220 X 3
Debit Salaries Payable $1320
Credit Cash $5,280