Question

A company pays its employees $4,250 each Friday, which amounts to $850 per day for the five-day work week 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. $1,480.
B. $2,220.
C. $740.
D. $3,700.
E. $2,960.

Answer 1

The options provided in the question are incorrect.

Answer:

Salaries Payable = 3400

Explanation:

The unpaid salaries for the week or the balance of the salaries payable can be calculated by multiplying the salary per day by the number of days worked in the week till the end of the accounting period. Thus, we will multiply 850 which is the salary per day by 4 as from Monday to Thursday, 4 work days have passed.

Salaries Payable = 850 * 4

Salaries Payable = 3400