Question

Clever Computers has a five-day workweek and pays the office staff $3,050 each week. If the month ends on a Thursday, the adjusting entry will credit Wages Payable for?

1) $610
2) $2,440
3) $3,050
4) $1,220

Answer 1

For a five-day workweek where the staff is paid $3,050, the adjusting entry for Wages Payable when the month ends Thursday is $610 for the unpaid Friday.

Step-by-step explanation:

The adjusting entry will credit Wages Payable for the wages earned by employees but not yet paid at the end of a reporting period. Given that Clever Computers has a five-day workweek and pays the office staff $3,050 each week, the amount owed for one day (since the month ends on a Thursday) can be calculated as follows: $3,050 divided by 5 days equals $610 per day. Since wages for one day (Friday) would be unpaid, the correct entry is $610 (Option 1).