A landscaping company operates five days per week with a daily payroll of $16,000. Employees are paid every Saturday for the workweek just completed (Monday through Friday). The last day of the month is Wednesday, March 31. What is the amount of Wages Expense recorded on the next payday, Saturday, April 3?

Question

Quizplus · Accepted Answer

There are 4 workweeks in March since the last day of March falls on a Wednesday. Therefore, the total payroll expense for March is:

$16,000 × 5 days × 4 weeks = $320,000

Since employees are paid every Saturday for the workweek just completed, the amount of Wages Expense recorded on the next payday, Saturday, April 3, will be the amount owed to employees for the workweek of Monday, March 29 through Friday, April 2. This is one-fifth (1/5) of the total payroll expense for March:

$320,000 ÷ 5 = $64,000

Therefore, the correct answer is C) $32,000, which is one-half (1/2) of $64,000. This is because the question asks for the amount of Wages Expense recorded on the next payday, which is only for one half of the workweek of Monday, March 29 through Friday, April 2.

A Landscaping Company Operates Five Days Per Week with a Daily