Question

Austin Company pays daily wages of $645 (Monday - Friday). Paydays are every other Friday. Prepare the Monday, January 31 adjusting entry, assuming that the previous payday was Friday, January 21. b. Prepare the journal entry to record the Austin Company’s payroll on Friday, February 4. c. Annual depreciation expense on the company’s fixed assets is $39,600. Prepare the adjusting entry to recognize depreciation for the month of January. d. The company’s office supplies account shows a debit balance of $3,755. A count of office supplies on hand on January 31 shows $635 worth of supplies on hand. Prepare the January 31 adjusting entry for Office Supplies.

Answer 1

Answer:

Explanation:

The adjusting entries are shown below:

1. Wages Expense A/c Dr $2,580 ($645 × 4 days)

         To Wages Payable A/c           $2,580

(Being wages are adjusted)

2. Depreciation expense A/c Dr $39,600

          To Accumulated depreciation        $39,600

(Being depreciation expense is adjusted)

3. Office supplies expense A/c Dr $3,120 ($3,755 - $635)

           To Office supplies A/c                        $3,120

(Being office supplies is adjusted)