Howard Products has a daily payroll of $2,200,5 days a week.The employees are paid every Friday for that week's wages.July 31 was on a Wednesday and the employees were paid $11,000 on August 2.What is the journal entry on August 2,assuming the appropriate month ending adjusting entry was made on July 31?

A)$\begin{array} { l l l }
\text { Cash } & 11,000 & \
\quad\text { Prepaid wages } & & 6,600 \
\quad\text { Uneamed wages } & & 4,400 \
\end{array}$

B)$\begin{array}{lccc}
\text { Cash } & 11,000 & \
\quad\text { Prepaid wages } & & 6,600 \
\quad\text { Wage expense } & & 4,400 \
\end{array}$

C)$\begin{array}{lccc}
\text { Wage expense } & 11,000 & \
\quad\text { Cash } & & 11,000 \
\end{array}$

D) $\begin{array}{lccc}
\text { Prepaid wages } & 6,600& \
\quad\text { Wage expense } & & 4,4000 \
\quad\text { Cash } && 11,000 \
\end{array}$

E)$\begin{array}{lccc}
\text { Wage expense } & 4,400 & \
\text { Accrued wages payable } & 6,600& \
\quad\text { Cash } & &11,000
\end{array}$

Question

Howard Products has a daily payroll of $2,200,5 days a week.The employees are paid every Friday for that week's wages.July 31 was on a Wednesday and the employees were paid $11,000 on August 2.What is the journal entry on August 2,assuming the appropriate month ending adjusting entry was made on July 31?

A)$\begin{array} { l l l } 
\text {  Cash } & 11,000 & \
\quad\text { Prepaid wages } & & 6,600 \
\quad\text { Uneamed wages } & & 4,400 \
\end{array}$

B)$\begin{array}{lccc}
\text {  Cash } & 11,000 & \
\quad\text { Prepaid wages } & & 6,600 \
\quad\text { Wage expense } & & 4,400 \
\end{array}$

C)$\begin{array}{lccc}
\text {  Wage expense } & 11,000 & \
\quad\text { Cash } & & 11,000 \
\end{array}$

D) $\begin{array}{lccc}
\text { Prepaid wages } & 6,600& \
\quad\text { Wage expense } & & 4,4000 \
\quad\text { Cash } && 11,000 \
\end{array}$

E)$\begin{array}{lccc}
\text {  Wage expense } &  4,400  & \
\text { Accrued wages payable } & 6,600&  \
\quad\text { Cash } & &11,000
\end{array}$

Quizplus · Accepted Answer

Since July 31 is a Wednesday, the wages for three days of that week (Monday, Tuesday, and Wednesday) would have been accrued. The total weekly payroll is $11,000, so $2,200 per day times 3 days equals $6,600, which would be recorded as "Accrued wages payable" for the July 31 adjusting entry. The remaining $4,400 represents two days' wages (Thursday and Friday) that are paid but not accrued, thus recorded as "Wage expense" on August 2. The total payment of $11,000 is recorded against "Cash".

Howard Products Has a Daily Payroll of $2,200,5 Days a Week.The