if Wages are paid for work performed up to the day before the day of payment. For example, wages owing for work performed on days 1 to 7 are paid on day 8. If i do the worksheet for one month period (JUNE), should i add the last 2 day (29th and 30th JUNE) wages into the adjusting entries, and also add it into the income statement?
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- Correction: wages instead of salaries
- Apr 05, 2018 at 9:07am
- so if the wages is X for one week, then in the income statement, expenses of wages is 4X+X*2/7, and X*2/7 is account payable in liabilities in balance sheet
- Apr 05, 2018 at 9:12am
- If the total wages for one week is X, then the two day wages expense and payable is X divided by 7 times 2.
- Apr 05, 2018 at 9:33am
- or X times 2/7
- Apr 05, 2018 at 9:34am
- yeah that's what i mean X*2/7, so am i right on the position where i put those figures
- Apr 05, 2018 at 9:41am
- Yes, you are right. wages expense is in the income statement debit side if it's in the worksheet. Then , credit side of balance sheet is the wages payable. Adjusting column of the worksheet, should be shown also the amounts of wages expense in the debit side and credit side for the wages payable.
- Apr 05, 2018 at 9:46am
- so it's in current liabilities right? not non-current liabilities
- Apr 05, 2018 at 10:44am
- Apr 05, 2018 at 10:48am
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There would be an entry for the two days that are owed but not paid. The adjusting entry would be as follows: debit wages... View the full answer