Employees at Mango Corporation are paid $18000 cash every Friday for working Monday through Friday. The calendar year accounting period ends on Tuesday December 31. How much salaries and wages expense should be recorded three days later on January 2?

Question

Quizplus · Accepted Answer

The employees work 5 days a week for $18000, so each day they earn $3600 ($18000/5). Since the accounting period ends on a Tuesday, two days of work (Monday and Tuesday) need to be accounted for, totaling $7200 ($3600 x 2). However, the question asks for the expense recorded three days later on January 2, which means we need to account for the remaining three days of the week (Wednesday, Thursday, and Friday), totaling $10800 ($3600 x 3).

Employees at Mango Corporation Are Paid $18000 Cash Every Friday