NASCAR mufflers pays employees each Friday for the five day work week ending on
ID: 2461810 • Letter: N
Question
NASCAR mufflers pays employees each Friday for the five day work week ending on that day. the company's normal gross weekly payroll is 4800, if the last Friday of the month falls on January 27, what adjusting entry should be made on January 3, the fiscal year end? NASCAR Mufflers pays employees each Friday for the five day work-week ending on that day. The company's normal gross weekly payroll is $4,800. If the last Friday of the month falls on January 27, what adjusting entry should be made on January 31, the fiscal year end?Explanation / Answer
NASCAR Muffer has paid for the month of January till 27th, thereafter the week starts at 30th and left out days in that month are two days.
Create the salary provision for closure of the fiscal year for two days (i.e 30th and 31st)
Weekly pay amount $4800 (i.e for 5 days)
Proportionate pay for 2 days is $ 1920 (i.e 4800/5*2)
Entry:
Salaries Dr - 1920
Provision for salaries Cr - 1920
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