Question

Employees earn $5,000 per day, work five days per week, monday through friday, and get paid every friday. if the previous payday was january 26 and the accounting period ends on january 31, what amount is the ending balance in the wages payable account?

Answer 1

Employees earn $5,000 per day,work five days per week, monday through friday, and get paid every friday.it means every week every empoyee is paid $25,000 ON Friday . If the previous payday was january 26 and the accounting period ends on january 31.that means, january 26 is the friday ,the day on which payment made. then neaxt day i.e january 27 is saturday , in same way january 28 is sunday. so, from january 29 to january 31st ,there are 3 days ,where january 31st is the dat eon which accounting period ends . so payment for 1 day $5000. thus payment for 3 days = 3 x $5000 = $15000 thus $15000 is the amount in the ending balance in the wages payable account