Employees earn $5,000 per day, work five days per week, Monday through Friday, and get paid every Friday. If the previous payday was January 26 and the accounting period ends on January 31, what amount is the ending balance in the wages payable account?

Question

Quizplus · Accepted Answer

The ending balance in the wages payable account is for the days worked but not yet paid. From January 29 to January 31, employees worked 3 days. Therefore, 3 days x $5,000 = $15,000 is owed and unpaid by January 31.

Employees Earn $5,000 Per Day, Work Five Days Per Week