Question

Employees at Metlock, Inc. are paid $13500 cash every Friday for working Monday through Friday. The calendar year accounting period ends on Wednesday, December 31. How much salaries and wages expense should be recorded two days later on January 2

Answer 1

Answer:

$5,400

Explanation:

The computation is shown below:

Given that

The cash paid every Friday = $13,500

And, on December 31, it is Wednesday

So, on December 31, the salaries and wages is  

= $13,500 × 3 days ÷ 5 days

= $8,100

And, on January 1 and January 2, the salaries and wages expense is

= $13,500 - $8,100

= $5,400

Or

= $13,500 × 2 days ÷ 5 days

= $5,400