Employees at Julian Corporation are paid $5,000 cash every Friday for working Monday through Friday. The calendar year accounting period ends on Wednesday, December 31. How much salary expense should be recorded two days later on January 2?
A) $5,000
B) $3,000
C) None, matching requires the weekly salary to be accrued on December 31.
D) $2,000

Question

Quizplus · Accepted Answer

Since the employees work Monday through Friday and are paid $5,000 for the week, the daily rate is $1,000. By January 2, they have worked two days (Thursday and Friday), so the salary expense to be recorded is $2,000.

Employees at Julian Corporation Are Paid $5,000 Cash Every Friday