Assume that the City of Juneau maintains its books and records to facilitate the preparation of its fund financial statements.The City pays its employees bi-weekly on Friday.The fiscal year ended on Wednesday, June 30.Employees had been paid on Friday, June 25.The employees paid from the General Fund had earned $120,000 on Monday, Tuesday, and Wednesday (June 28, 29, and 30).They will earn $80,000 on Thursday and Friday (July 1 and 2).What entry, if any, should be made on June 30?

Question

Quizplus · Accepted Answer

An entry should be made to record the amount earned by employees from June 28-30, which is $120,000. This entry will increase the Expenditure account and the Wages and Salaries Payable account. Option B is incorrect because it includes the amount that will only be paid after June 30. Option C is incorrect because it inaccurately labels the account as "Expenses" instead of "Expenditures." Option D is incorrect because an entry is necessary to accurately report the financial transactions of the City for the period.

Assume That the City of Juneau Maintains Its Books and Records