Merando Industries employs a five-day workweek and a September 30 year-end.Normal weekly wages amount to $35000.If September 30 ends on a Wednesday what is the appropriate transaction recorded on October 2 the next payday for Merando?

Question

Quizplus · Accepted Answer

On September 30, three days of wages ($21,000) are accrued as Salaries and Wages Payable. On October 2, the full week's wages ($35,000) are paid, so Salaries and Wages Expense is increased by $14,000 for the two days in October, Salaries and Wages Payable is decreased by $21,000, and Cash is decreased by $35,000.

Merando Industries Employs a Five-Day Workweek and a September 30