Question 8 is cumpolsory. And help with question is appreciated. Thanks. Salarie
ID: 2459381 • Letter: Q
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Question 8 is cumpolsory. And help with question is appreciated. Thanks.
Salaries and wages payable to factory employees were S12,000 on 1 March and $34,000 on 31 March. Gross salaries and wages paid during March totalled $32,000. March's direct labour totalled $19,000. T-account for Accrued Payroll and general journal entries for recording salaries and wages earned by, and paid to, factory employees during March. The Patel Company has a gross payroll of $8 000 per day. Withholdings for PAYG taxes are $2400 per day. There are no other deductions from employees' earnings. The firm works five days per week, Monday to Friday inclusive. The payroll period covers Thursday to Wednesday inclusive and the payroll for the week is paid on the following Friday. Gross payroll consists of $4800 direct labour, $1600 indirect factory labour, $1120 selling expenses and $480 general and administrative expenses each day. The following calendar should be used to answer the questions: What is the total amount to be credited to Accrued Payroll in respect of September earnings? If balance day adjustments are performed at the end of each month, what would be the balance in Accrued Payroll account at the close of business on September 30? Suppose that a single journal entry is made on the last day of each month to record the distribution of total labour costs for the month, but that entries are made each Friday to record payment of wages and withholdings. Also, PAYG taxes withheld are remitted to the Taxation Department at the end of each month. Show the weekly journal entry. Construct the necessary ledger accounts to show all entries in respect of labour costs during the month of September.Explanation / Answer
a) Total Amount of Accural of September No of Days in September 30 No of Days leave due to Saturday & Sunday 8 No of working days 22 Gross payrol per day $ 8,000 Total Expenses of salary for September $ 176,000 Nos of Days unpaid salary for September from 26 th Septembe to 30th September - working days 3 Accured salary for September payable at month end 24,000 b) Bal days of payroll adjustment for September Accured salary payable Account at the month beginning of September $ 16,000 (2 days of August) Provision reversal for August $ -16,000 Accrued salary at the month end of Sep $ 24,000 Closing balance of Payroll $ 24,000 c) Jounrnal Entries Debit Credit $ $ 26th September Accured Salary payable 16,000 Direct Labour 91,200 Indirect labour 30,400 Selling expenses 21,280 General & Administration Exp 9,120 To Bank 117,600 To PAG taxes payable 50,400 (being salary paid for August 28 to Sep 25) (19 days salary for sep and 2 days salary for aug) 30th September Direct Labour 14,400 Indirect labour 4,800 Selling expenses 3,360 General & Administration Exp 1,440 Accured Salary payable 24,000 (being salary accured for 3 days) 30th September PAG taxes payable 50400 To bank 50,400 (amount of taxes paid)
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