Question

Zar Company paid employee wages on and through Friday, January 26, and the next payroll will be paid in February. Employees work 5 days a week (from Monday till Friday) and the company pays $900 a day in wages. What will be the adjusting entry to accrue wages expense of the remaining unpaid days at the end of January

Answer 1

Wages expense Dr ($900 × 3 days) $2,700

To wages payable $2,700

(being wages expense is recorded)

Explanation:

The adjusting entry is as follows

Wages expense Dr ($900 × 3 days) $2,700

To wages payable $2,700

(being wages expense is recorded)

Here the wages expense is debited as it increased the expense and credited the wages payable as it also increased the liability

Since on Jan 26, it is friday so the remaining days would be 3