Question
The employees of Neat Clothes work Monday through Friday. Every other Friday the company issues payroll checks totaling $32,000. The current pay period ends on
The employees of Neat Clothes work Monday through Friday. Every other Friday the company issues
payroll checks totaling $32,000. The current pay period ends on Friday, July 3. Neat Clothes is now
preparing quarterly financial statements for the three months ended June 30. What is the adjusting
entry to record accrued salaries at the end of June?
The answer is:
Salaries expense 22,400
Salaries payable 22,400
Amount accrued: $32,000 x 7/10 = $22,400
Can you explain how did we get 22,400? I know it's by $32,000 x 7/10 but why we divide 7 over 10? what does 7 mean and what does 10 represent?
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Managing IoT Systems For Institutions And Cities Internal Audit And IT Audit
Authors: Chuck Benson
1st Edition
1138590487, 978-1138590489
