Question

Tuck Company pays its employees weekly based on a 5 day 40 hour work week and the gross payroll is $22,275.

Required: On June 30th there are 2 days accrued payroll to recognize in the monthly financials. How much is the accrued liability on June 30th balance sheet? Ignore withholding taxes

Answer 1

The accrued payroll liability for Tuck Company on the June 30th balance sheet, given the payroll data and ignoring withholding taxes, is calculated to be $8,910.

Step-by-step explanation:

The question asks us to calculate the accrued payroll liability for Tuck Company for the last two days of June, given that the monthly gross payroll is $22,275 for a 5-day, 40-hour work week. First, we need to determine the daily payroll expense. Since there are 5 workdays in a week, we divide the weekly payroll by 5 days:

Daily payroll = Weekly payroll / Number of workdays = $22,275 / 5 = $4,455

To find the accrued liability for 2 days, we multiply the daily payroll by 2:

Accrued payroll liability = Daily payroll × Number of accrued days = $4,455 × 2 = $8,910

Therefore, the accrued payroll liability to be reported on the June 30th balance sheet is $8,910.