Homework SoursePrattJulian Barbeque is a small restaruant in Columbia Misso
Pratt/Julian Barbeque is a small restaruant in Columbia, Missouri. They employ four part time employees earning $48 each per day.
Their employees are paid every Friday and the financial statements of the business are prepared at the end of each month. The business is only open Monday through Friday to serve the nearby factory workers during their lunch breaks.
This year June 30 fell on a Thursday and the financial statements were prepared as normal. Would Pratt/Julian need to prepare any adjusting entries regarding the part-time employees\' payroll, and if so for how much?
Absolutely not, Pratt/Julian should prepare payroll checks up through the Thursday month end date and then process a smaller payroll check on Friday for one day\'s wages.
Absolutely, an adjustment for $352 needs to be recorded for the June month end.
Absolutely, Pratt/Julian need to record an adjusting entry for the last four working days of the month in the amount of $768 as an accrual, showing that the amount is owed to employees even though it will be paid the next day.
None of the other answers
Absolutely not, the month end is close enough to the actual payroll date (Friday) that an adjustment for the month end isn\'t needed.
Part 2.
Which of the following transactions would be recorded in a Purchases Journal.
Bought $640 worth of office supplies from Bexar Office Wholesaler on account.
Accepted a $214 cash payment from a client stopped in to make an in-store payment.
Issued $1,225 check for monthly electricity payment.
Issued a check of $175 to Squeeky-Clean window washers
| A. | Absolutely not, Pratt/Julian should prepare payroll checks up through the Thursday month end date and then process a smaller payroll check on Friday for one day\'s wages. | |||||||||||||
| B. | Absolutely, an adjustment for $352 needs to be recorded for the June month end. | |||||||||||||
| C. | Absolutely, Pratt/Julian need to record an adjusting entry for the last four working days of the month in the amount of $768 as an accrual, showing that the amount is owed to employees even though it will be paid the next day. | |||||||||||||
| D. | None of the other answers | |||||||||||||
| E. | Absolutely not, the month end is close enough to the actual payroll date (Friday) that an adjustment for the month end isn\'t needed. Part 2. Which of the following transactions would be recorded in a Purchases Journal.
|
Solution
note: please post one question at a time.
the solution for Pratt/Julian is given below:
C.Absolutely, Pratt Jullian need to record an adjusting entry for the last four working days of the month in the amount of $768 as an accrual, showing that the amount is owed to employees even though it will be paid next day.
the following will be the year end journal entry:
| date | accounts | debit | credti |
| june 30 | Salaries and wages a/c | $768 | |
| ................TO Salaries and wages payable a/c | $768 | ||
| (amount = $48 * 4 employees * 4 days from monday to thursday =>$768) |
