Question

Genco Ltd has a weekly payroll of $140 ,000. The last payroll processed before the end of the annual reporting period was for the week ended Friday 24 June 2020. Employees do not work during weekends. What is the accrued Wages Expense as at 30 June 2020?

		$112,000
		$80,000
		$120,000
		None of the above

Answer 1

Weekly payroll = 140000

Employees donot work on weekends. That is , one week is consisting of 5 days , Monday to Friday

Therefore payment for one day = 140000 /5 = 28000

Payment made upto 24 June 2020.

Therefore accrued payroll for 30 June 2020 = 28000 * 4 days = 112000.

4 days are 27 , 28 , 29 , 30 of June.( 25 th and 26 th June are not considered as it was Saturday and Sunday )

So first option is correct , ie ; 112000

Note

All figures are in $

Thank you .

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