Final answer:
The appropriate adjusting journal entry for salaries and wages at Waco Waffle House on December 31 is to credit Salaries and Wages Payable for $1,520. This amount represents the accrued salary for two days (December 30 and 31) since the last payday on December 27. Option c
Step-by-step explanation:
The student's question is about calculating the appropriate adjusting journal entry for accrued salaries and wages at year-end.
Given that the employees at Waco Waffle House are paid $3,800 weekly for 5 days of work, and the last payment was on December 27 for the week ending on that date, we need to account for the salaries earned by employees from December 28 to December 31 (which is a part of the next pay period but falls in the current year that needs to be accounted for).
To calculate this amount, we divide the weekly payroll by 5 to find the daily payroll amount, as the employees work 5 days a week. Then we multiply the daily payroll amount by the number of days worked but not yet paid for in December.
$3,800 weekly payroll / 5 days = $760 daily payroll
$760 daily payroll x 2 days (Dec 30 and 31, as Dec 28-29 is the weekend) = $1,520
Therefore, the adjusting journal entry would be to credit Salaries and Wages Payable for $1,520. This represents the portion of salaries that have been earned by employees but have not been paid by the end of the accounting period (December 31). Option c