a. each friday, laughter legal services pays employees for the current weeks work. the amount of the weekly…
a. each friday, laughter legal services pays employees for the current weeks work. the amount of the weekly payroll is $6,000 for a five - day workweek. this year, december 31 falls on a tuesday. laughter legal services will pay its employees on january 3.\ndate accounts and explanation debit credit\ndecember 31
Answer
Explanation:
Step1: Calculate daily payroll
The weekly payroll is $6,000 for a 5 - day workweek. So the daily payroll is $6000\div5 = 1200$.
Step2: Determine accrued payroll as of December 31
December 31 is a Tuesday. So 2 days of payroll are accrued for the current week. The accrued payroll is $1200\times2=2400$.
Step3: Record the adjusting entry
The adjusting entry on December 31 will debit Salaries and Wages Expense to recognize the expense and credit Salaries and Wages Payable to record the liability.
| Date | Accounts and Explanation | Debit | Credit |
|---|---|---|---|
| December 31 | Salaries and Wages Expense | 2400 | |
| Salaries and Wages Payable | 2400 |
Answer:
| Date | Accounts and Explanation | Debit | Credit |
|---|---|---|---|
| December 31 | Salaries and Wages Expense | 2400 | |
| Salaries and Wages Payable | 2400 |