Final answer:
The Adjusting Journal Entry on June 30th records the accrued wages for two days for five employees, with each employee earning a daily wage of $60. The entry is a $600 debit to Wages Expense and a $600 credit to Wages Payable.
Step-by-step explanation:
The question pertains to creating an Adjusting Journal Entry on June 30th for a company that pays its employees on a weekly basis. As the month of June ends on a Tuesday and considering a 5-day work week, two days of wages for the month of June have not been paid or recorded in the financial statements. With five employees each earning $300 per week, the daily wage per employee amounts to $60 ($300/5 days). Thus, the total wages for two days for all five employees would be $600 (5 employees × 2 days × $60/day).
The Adjusting Journal Entry to record the accrued wages would be:
- Debit Wages Expense $600
- Credit Wages Payable $600
This entry will ensure that the expenses are matched with the revenues of the period they relate to, adhering to the accrual basis of accounting.