Question

wages expense for may

wages expense for june

balance of liability for wages payable on may 31st

Below is the time card for Sabrina Anderson, the only employee of Shannon Company, Sabrina is paid $10 per hour, and worked the hours as show below. May 30 May 31 June 1 June 2 June 3 total Sabrina Time Card 8 hours 8 hours 8 hours 8 hours 8 hours 40 hours In the space below answer the following: a) Wages expense to be recognized in May b) Wages expense to be recognized in June c) the balance of the liability for Wages payable on May 31st 240 b) wages expense In June $ a) wages expense in May $ c) Wages payable at May 31st 5 160 160

Answer 1

Solution:

wages expense for May	$        160
wages expense for June	$        240
balance of liability for wages payable on may 31st	$        160

Working:

Month	Date	Hours	Wages($10 per hour)
May	30th	8	80
	31st	8	80
June	1st	8	80
	2nd	8	80
	3rd	8	80

Notes:

1) No information is provided in relating to payment of 30th May wages payment. So, it is considered that both the 30th and 31st wages are due and outstanding and treated as liability.