A company pays each of its two office employees each Friday at the rate of $210 per day for a five-day week that begins on Monda
y. If the monthly accounting period ends on Tuesday and the employees worked on both Monday and Tuesday, the month-end adjusting entry to record the salaries earned but unpaid is:
If the monthly accounting period ends on Tuesday and the employees worked on both Monday and Tuesday, the month-end adjusting entry to record the salaries earned but unpaid is $840.
For two employees and for two days, the adjustment made was 4 times their per day income.
Total month end adjusting entry will be 2×2×$210 = $840
What is Accounting Period?
A set period of time, such as a calendar year or fiscal year, is referred to as an accounting period in which income balance of whole month is calculated.
It is used for performing, aggregating, and analyzing accounting operations.
The accounting period is helpful for investing because prospective investors can assess a company's success by looking at its financial statements, which are based on a set accounting period.
<h3>What is Month-End Adjusting Entry?</h3>
Month-End Adjusting Entry is a record created at the conclusion of an accounting period that allows an income or expense to be recognized in the timeframe in which it is incurred.
Accruals, deferrals, and estimations are the three forms of Month-End Adjusting Entry that are most frequently used.
<h3>What is Fiscal Year?</h3>
Companies and governments utilize fiscal years, which are one-year periods, for financial reporting and planning.
The most typical accounting period utilized to create financial statements is a fiscal year.
A company's fiscal year is based on 3 determining parameters namely financial reports, external audits, and federal tax filings.
<span>The target
selling price per unit is $0.77, According the accounting books I have search,using
this solution: ($168,000 divided by 400,000) + $0.35= $0.77.Target costing is
an approach in most company to know a product’s life cycle cost in which it is
sufficient to develop specified functionality and quality.</span>
The correct word for the blank space is: Timeliness.
Explanation:
Timeliness is a characteristic the Financial Statements must meet by which executives in decision-making positions could be able to read and comprehend what the information reflects on the company's well being so they can take proper action to correct the course of the company or find the way to keep it and improve it.
