Green corp has 3 employees. Each earns $600 per week for a 5 day work week ending on friday. this month the last day of the month falls on wednesday. the company should make which of the following adjusting entries.
1. credt wage expense $360 - debit wage payable 360
2 dbt wage expense 1080 - credit wage payable 1080
3 crdt wage expense 1080 - debit wage payable 1080
4 debit wage exp 360 - credit wage payable 360
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Determine what they earn in a day
For three days they would have earned 120 * 3 which is $360
Wages Expense is an income statement account. Wages Payable is a current liability account that is reported on the balance sheet.
Liabilities are credited while assets are debited
okay, this makes more sense reading it several times now - but last question, since there are 3 employees would you take your answer and x by 3 for 1080?
Yes you have to do that, $360 is just for one employee
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