Question

A company pays its employees $4,200 each Friday, which amounts to $840 per day for the five-day workweek that begins on Monday. If the monthly accounting period ends on Thursday and the employees worked through Thursday, the amount of salaries earned but unpaid at the end of the accounting period is:a.$4,000.
b.$800.

c.$1,600.

d.$2,400.

e.$3,200.

Answer 1

Answer:

e. $3,200

Explanation:

According to accrual concept the expense which is incurred but not been paid should be recorded in the same period when it is accrue.

At the end of the period only 4 days from Monday to Friday is pased for which the wages have not been paid. The expense is accrued and unpaid.

Pay per day = $800

Pay for 4 days = $800 x 4 = $3,200