A company whose fiscal year ends December 31, has a weekly payroll of $100,000. Employees work 5 days per week, Monday through Friday and payday is every Friday. How much wages expense will be recorded on the Friday, January 3 payday?

Question

Quizplus · Accepted Answer

The last pay date of the fiscal year would be on December 27. Therefore, there will be no wages expense on January 3 because no work was performed during that week. The $100,000 payroll would be recorded as an expense in the fiscal year ending December 31.

A Company Whose Fiscal Year Ends December 31, Has a Weekly