Question
Johnny's Drive-in pays its employees bi-weekly. The first payday of 2014 will be on January 3 and will compensate employees for work done from December
Johnny's Drive-in pays its employees bi-weekly. The first payday of 2014 will be on January 3 and will compensate employees for work done from December 18-31, 2013. Because the employee work was performed in 2013, the wages expense should be recorded in 2013.
Record the Transaction:
What adjusting entry will need to be made? Total compensation to be paid for the 2 week period is $100,000.
ACCOUNTS
WAGES EXPENSE
CASH
WAGES PAYABLE
ACCOUNTS PAYABLE
AMOUNTS
$100,000
$100,000
$110,000
$110,000
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Financial Accounting A User Perspective
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry
6th Canadian Edition
470676604, 978-0470676608
