JournaldrillAccrued wages
A journal entry exercise from Journaldrill. Solve it with an account picker and debit and credit fields in your browser, and it is checked the moment you submit.
The task
Greenleaf Landscaping's crew earns a combined $1,250 per day and is paid every Friday for a Monday through Friday work week. The accounting period ends on a Wednesday, and the crew has worked Monday, Tuesday and Wednesday of that week without being paid. Record the adjusting entry.
What this exercise teaches
Three days of work at $1,250 per day means $3,750 of wages belong to this period. Wages Expense is debited so the cost lands in the period the work was done, and Wages Payable is credited because the cash will not be paid until Friday.
A hint if you get stuck
The crew has earned pay that has not been paid or recorded, so record both the cost and the amount owed.
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