Accounting Journal a. - The weekly payroll of Top-Loading Tyler's Video Emporium is $900, paid every Friday for a five-day workweek. Assume December 31, 2009 is on Thursday, but the employees will not get paid until Friday, January 1, 2010. SHOW ME THE ACCOUNTING EQUATION SHOW ME THE GENERAL JOURNAL ID Account Title Debit Credit Wages Expense Wages Payable a. 720 720
Accounting Journal a. - The weekly payroll of Top-Loading Tyler's Video Emporium is $900, paid every Friday for a five-day workweek. Assume December 31, 2009 is on Thursday, but the employees will not get paid until Friday, January 1, 2010. SHOW ME THE ACCOUNTING EQUATION SHOW ME THE GENERAL JOURNAL ID Account Title Debit Credit Wages Expense Wages Payable a. 720 720
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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How is the answer 720 and not 900? Help explain the concept for me to understand please
Transcribed Image Text:Instructions
Accounting Journal
O Accounting Ledger
2 Accounting Equation
Accounting Journal
a. - The weekly payroll of Top-Loading Tyler's Video Emporium is $900, paid every
Friday for a five-day workweek. Assume December 31, 2009 is on Thursday, but the
employees will not get paid until Friday, January 1, 2010.
SHOW ME THE ACCOUNTING EQUATION
SHOW ME THE GENERAL JOURNAL
ID
Account Title
Debit
Credit
Wages Expense
Wages Payable
a.
720
720
You got it all correct!
Here's how the effect on the accounting equation is recorded in the journal. The
important new information is that Wages Expense is a debit and Wages Payable is a
credit. Remember: Debits are always written first in the journal and credits second.
Ask a Question
Debits and Credits
O Are total debits and total credits equal for this transaction?
Why do total debits and total credits always have to be equal?
O How did you know that Wages Payable was a credit?
O How did you know that Wages Expense was a debit?
Financial Statements
O Which financial statements did this transaction affect?
ODoes this transaction affect the income statement?
ODoes this transaction affect the statement of retained earnings?
Does this transaction affect the balance sheet?
O Does this transaction affect the cash flow statement?
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Expert Solution
Explanation -
Accrued Wages -
Wages are accrued means till year ended expenses are incurred but payment has not made. This is why company has to booked it as accrued expense.
That means expense has been incurred but not paid.
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