Question:

Assuming that the end of the reporting period falls on a Thursday, record what the accounting entry at the end of the reporting period to recognise four days salary and wages expense would be, the journal entry on the following Friday, and the entry for when the tax and Dog MBF were paid on the following Monday.

la) Paw Patrol Limited employs its staff on a five-day working week with employees paid on Fridays for the previous week. The weekly salaries expense is $10,000 and Paw Patrol retains $3,000 per week to pay the IRD for pay-as-you-earn (PAYE) tax on behalf of the employees. It also retains $500 per week to pay staff premiums to the Dog Medical Benefits Fund (Dog MBF). These are paid on the following Monday of each week