Question

Karen earns a salary of $30,000 per year. For the pay period of April 26 to May 9th, how much of Karen’s salary expense would be accrued on the April 30 financial statements of the hotel she works for? a. $0 b. $1,153.85 c. $82.42 d. $412.09

Answer 1

For the pay period of April 26 to May 9th, the accrued salary expense on the April 30 financial statements would be $10,714.29.

Step-by-step explanation:

In accrual accounting, expenses are recognized when they are incurred, regardless of when they are actually paid. So, for the pay period of April 26 to May 9th, the salary expense that would be accrued on the April 30 financial statements would be for the days worked from April 26 to April 30. This would be 5 days out of the 14-day pay period.

To calculate the accrued salary expense, you can use the formula:

Accrued Salary Expense = (Total Salary / Number of Days in Pay Period) x Number of Days Worked

In this case, the total salary for the year is $30,000. The pay period is 14 days and Karen worked 5 days. So,

Accrued Salary Expense = ($30,000 / 14) x 5 = $10,714.29

Therefore, the option that represents the accrued salary expense on the April 30 financial statements is d. $10,714.29.