Question

Molly Mocha employs one college student every summer in her coffee shop. The student works the five weekdays and is paid on the following Monday. (For example, a student who works Monday through Friday, June 1 through June 5, is paid for that work on Monday. June 8.) The coffee shop adjusts its books monthly, if needed, to show salaries earned but unpaid at month-end. The student works the last week of July, which is Monday, July 28, through Friday, August 1. If the student earns $160 per day, what adjusting entry must the coffee shop make on July 31 to correctly record accrued salaries expense for July? View transaction list View journal entry worksheet No Date General Journal Debit Credit

Answer 1

No. Date July. 31 General Journal Salary Expense Salary payable (Recording of Accrued salary for 4 days at 160 per day) out of 5 days One day is in August Debit Credit 640 640 Note.

Salary from July 28 to August 1 will be paid on August 4. So 4 days salary is accured in July (28,29,30 and 31). One day is in August.