Question

Each​ Friday, Laferty pays employees for the current​ week's work. The amount of the weekly payroll is $ 5, 000for a​ five-day workweek. This year December 31 falls on a Thursday. Laferty will pay its employees on January 11.

Answer 1

Answer:

1  

Db Salaries expenses__4000  

Cr Accrued salaries__________4000

Accrued on December 31

Explanation:

Accrued salaries refers to the amount of liability remaining at the end of a reporting period for salaries that have been earned by employees but not yet paid to them.

Weekly payroll 5000  

Day payroll          1000  

 

Monday-Thursday 4000  

   

1  

Db Salaries expenses__4000  

Cr Accrued salaries__________4000

Accrued on December 31

Answer 2

Answer:

wages expense   4,000 debit

   wages payable            4,000 credit

--accued wages Dec 31th---

wages expense   5,000  debit

wages expense   4,000  debit

                 cash                         9,000 credit

--payment of wages at Jan 11th--

Explanation:

Time line:

<------/---------------/------------------------------/-->

   beginning of the week

                 Dec 31th adjusting entry

                                                      Jan 11th payment date

We need to accrue the earned wages from our employees until December 31th

5,000 dollars is for thew whole week

So at thursday we have 4 days of work therefore; 4,000 in wages.

we recognize this amount as expense and wages payable.

Then, on January 11 when we do the payment we got 9 days

as Jan 1st employees didin't work. The total wages will be for 9,000 from which; 4,000 are already recognized as payable so wages expense for the period will be 5,000.