Question

Mason Painting Services has a weekly payroll of $24,000. December 31 falls on Thursday and Mason will pay its employees the following Monday (January 4) for the previous full week. Assume that Mason has a five-day workweek and has an unadjusted balance in Salaries Expense of $770,000. What amount should be debited to Salaries Expense on December 31?

A. $9,600
B. $14,400
C. $19,200
D. $24,000
E. None of the above

Answer 1

To determine the amount that should be debited to Salaries Expense on December 31, we need to calculate the amount for four days of work based on the weekly payroll of $24,000.The correct answer is C. $19,200.

Step-by-step explanation:

To determine the amount that should be debited to Salaries Expense on December 31, we need to consider the timing of when the employees are paid. Mason Painting Services pays its employees on the following Monday (January 4) for the previous full week. Since December 31 falls on a Thursday, the employees have worked four days in that week.

Therefore, we need to calculate the amount for four days of work. A five-day workweek is $24,000, so the daily rate would be $24,000 divided by 5, which is $4,800. For four days, the amount that should be debited to Salaries Expense on December 31 is $4,800 multiplied by 4, which is $19,200.