Question
Fitzgerald Company pays its employees every other Friday. December 31, 2017, was a Sunday. On Friday, January 5, 2018, Fitzgerald paid wages of $112,000, which
Fitzgerald Company pays its employees every other Friday. December 31, 2017, was a Sunday. On Friday, January 5, 2018, Fitzgerald paid wages of $112,000, which covered the 14-day period from December 20, 2017, through January 2, 2018. Wages were earned evenly across all days, including Saturdays and Sundays. Prepare:
a. the entry to accrue the companys wages at December 31, 2017.
b. the entry on January 2, 2018.
Hint: $112,000 is the wage for 14 days of working.
There will be wages expense and wages liability in the journal entries. The payroll is given every other Friday. Every other Friday means like this:
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