Question

Zoey Bella Corp. has a payroll of $10,000 for a five-day workweek. Its employees are paid each Friday for the five-day workweek. Prepare the adjusting entry on December 31 assuming the year ends on Thursday.

Answer 1

Answer:

Explanation:

From the question, we are informed that Zoey Bella Corp. has a payroll of $10,000 for a five-day workweek. Its employees are paid each Friday for the five-day workweek.

Assuming the year ends on Thursday which is 31st December, the salary expense that will be accrued on Thursday, December 31st will be:

= $10,000/5 × 4

= $2000 × 4

= $8000

It should be noted that Monday to Thursday is 4 days which was used in the calculation.

Kindly check the attached file for the adjusting entry.