Question

In recording the monthly adjusting entry for accrued wages at the end of the accounting period, the amount of the adjustment would usually be determined by: Question 26 options: collecting the timesheets for the days accrued. using the same amount as the prior month’s adjustment. using the wages of the salaried workers only. a percentage of the previous week’s gross payroll. a percentage of the previous week’s net payroll.

Answer 1

* The correct answer is Option #1 the accrual of monthly wages will be based on data collected from the time-sheets for the days accrued.

* For example, suppose for a group of worker, the timesheet says that they worked for 500 hrs in the month, and rate of pay is say $ 5 per hour, then the accrued wages for the month will be 500 x 5 = $ 2,500

* "using the same amount as the prior month’s adjustment", "using the wages of the salaried workers only", "a percentage of the previous week’s gross payroll", or  "a percentage of the previous week’s net payroll" will not be used to record the wages accrued for the month at the end of accounting period.