Question

A company pays its employees $3,700 each Friday, which amounts to $740 per day for the five-day work week that begins on Monday. If the monthly accounting period ends on Thursday and the employees worked through Thursday, the amount of salaries earned but unpaid at the end of the accounting period is:

Multiple Choice

• $1,480.

• $2,220.

• $740.

• $3,700.

• $2,960.

Answer 1

A company pays its employees $3,700 each Friday, which amounts to $740 per day for the five-day work week that begins on Monday

The employees works from monday to Thursday

I.e 4 days

The amount was paid for 5 days= $3,700 @ 740 perday

The amount from Monday to Thursday

I.e for 4 days = $740 × 4 = $ 2,960

( OR )

It can also be caluculated as below

The amount was paid for upto Friday = $ 3,700

The employee works only for Thursday i.e 4 days

The unpaid at the end of accounting period will be

$ 3,700 - $ 7,40 = $ 2,960