Mrs. Beard's Bagels has 6 employees who are paid $12 per hour. At December 31 each of Mrs. Beard's employees had worked 18 hours which had not been paid or recorded. Prior to adjustments, the company had recorded $85,700 in wages expense for the year.
If Mrs. Beard makes the appropriate adjusting entry, how much will be reported on the December 31 income statement as wage expense?

Question

Quizplus · Accepted Answer

The appropriate adjusting entry for the unpaid wages is calculated as follows: 6 employees * 18 hours each * $12 per hour = $1,296. This amount needs to be added to the previously recorded wages expense of $85,700, resulting in a total of $86,996 ($85,700 + $1,296) to be reported on the income statement.

Mrs Beard's Bagels Has 6 Employees Who Are Paid $12