Scorpion Company pays wages of $400 per day.The workweek begins on Monday and ends on Friday.Wages are paid weekly every Friday.The current month ends on a Wednesday.The adjusting entry for wages will _____.
A)increase expenses by $400
B)increase expenses by $1,200
C)increase expenses by $2,000
D)have no effect on expenses

Question

Quizplus · Accepted Answer

Since the workweek ends on Friday and wages are paid every Friday, the final week of the month will have three days of work, totaling $1,200 ($400/day x 3 days). Therefore, the adjusting entry for wages will increase expenses by $1,200.

Scorpion Company Pays Wages of $400 Per Day