Merando Industries employs a five-day workweek and a September 30 year-end.Normal weekly wages amount to $35,000.If September 30 is a Wednesday, what is the appropriate journal entry on October 2, the next payday for Merando?
A)Dr Salaries and Wages Expense $14,000 Dr Salaries and Wages Payable $21,000
Cr Cash $35,000
B)Dr Salaries and Wages Expense $21,000 Dr Salaries and Wages Payable $14,000
Cr Cash $35,000
C)Dr Salaries and Wages Expense $21,000 Cr Cash $21,000
D)Dr Salaries and Wages Payable $14,000 Cr Cash $14,000

Question

Quizplus · Accepted Answer

The wages for Monday to Wednesday (3 days) are accrued at year-end, totaling $21,000. On October 2, the company pays the full week's wages, so $14,000 is expensed for Thursday and Friday, and $21,000 is paid from the accrued liability.

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