Instructions Denton Corporation employs 50 workers in its plant. Each employee is paid $10 per hour and works seven hours per day, Monday through Friday. Employees are paid every Friday. The last payday was Friday, September 19. First Question Required: 1. Compute the dollar amount of the weekly payroll. 2. Prepare the journal entry on Friday, September 26, for the payment of the weekly payroll. 3. Denton prepares monthly financial statements. Prepare the adjusting journal entry on Tuesday, September 30, the last day of the month. 4. Prepare the journal entry on Friday, October 3, for the payment of the weekly payroll. 5. Wil net income for the month of September be understated or overstated if Denton doesn't bother with an adjusting entry on September 30? Chart of Accounts X 1. Compute the dollar amount of the weekly payroll. $ per week General Ledger ASSETS REVENUE 111 Cash 411 Sales Revenue 121 Accounts Receivable EXPENSES atements on Tuesday, September 30, 141 Inventory 152 Prepaid Insurance 154 Office Supplies on Hand 500 Cost of Goods Sold PAGE 1 174 Equipment 521 Wages Expense 532 Utilities Expense 533 Insurance Expense 534 Rent Expense IMPACT ON FINANCIAL STATEMENTS 179 Accumulated Depreciation BALANCE SHEET INCOME STATEMENT CREDIT ASSETS LIABILITIES EQUITY REVENUE LIABILITIES EXPENSES NET INCOME 537 Office Supplies Expense 211 Accounts Payable 231 Wages Payable 235 Notes Payable 261 Income Taxes Payable 541 Depreciation Expense 551 Advertising Expense 559 Miscellaneous Expenses 810 Interest Expense 910 Income Tax Expense EQUITY skly payroll. 311 Capital Stock 331 Retained Earnings PAGE 1 IMPACT ON FINANCIAL STATEMENTS BALANCE SHEET INCOME STATEMENT General Journal 2. Prepare the journal entry with the impact on the financial statements on Friday, September 26, for the payment of the weekly payroll. General Journal instructions PAGE 1 IMPACT ON FINANCIAL STATEMENTS GENERAL JOURNAL BALANCE SHEET INCOME STATEMENT DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY REVENUE EXPENSES NET INCOME 1 2 3. Denton prepares monthly financial statements. Prepare the adjusting journal entry with the impact on the financial statements on Tuesday, September 30, the last day of the month. PAGE 1 IMPACT ON FINANCIAL STATEMENTS GENERAL JOURNAL BALANCE SHEET INCOME STATEMENT DATE POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY REVENUE EXPENSES NET INCOME ACCOUNT TITLE Adjusting Entries 2 3 4. Prepare the journal entry with the impact on the financial statements on Friday, October 3, for the payment of the weekly payroll. PAGE 1 IMPACT ON FINANCIAL STATEMENTS GENERAL JOURNAL BALANCE SHEET INCOME STATEMENT DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY REVENUE EXPENSES NET INCOME 1 2 3 Final Question 5. Will net income for the month of September be understated or overstated if Denton doesn't bother with an adjusting entry on September 30
