Assume December 31 is a Monday. Wages are paid every Friday, and the weekly payroll (for five days) amounts to $6,000.
To record the correct amount of expense for December, the firm makes the following entry on December 31:
A) Wages Expense 1,200
Wages Payable 1,200
B) Wages Payable 1,200
Wages Expense 1,200
C) Wages Expense 6.000
Wages Payable 6,000
D) Wages Expense 4,800
Wages Payable 4,800
E) None of the above

Question

Quizplus · Accepted Answer

Since December 31 is a Monday, only one day's wages need to be recorded as an expense for December, which is $1,200 ($6,000/5 days).

Assume December 31 Is a Monday