Question
The total weekly payroll for Classic Auto Repairs Ltd. is $5,000 ($1,000 per day). The payroll is paid every Saturday for employee salaries earned during
The total weekly payroll for Classic Auto Repairs Ltd. is $5,000 ($1,000 per day). The payroll is paid every Saturday for employee salaries earned during the same five-day workweek (Monday through Friday, inclusive). Salaries were last paid on Saturday, September 25. This year the companys year-end, September 30, falls on a Thursday. Salaries will be paid next on Saturday, October 2. Prepare journal entries for each of the following dates:
(a) Payment of the salaries on September 25
(b) The adjustment to accrue salaries at September 30
(c) Payment of the salaries on October 2
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