Baker Construction, Inc. pays its employees each Friday for the work they performed that week. Baker’s employees only work on Monday through Friday. They do not work on Saturday or Sunday. Baker produces monthly financial statements; thus they prepare adjusting entries at the end of each month. For the month of June, the last payday was on Friday June 25th. The last day of June was on Wednesday June 30th. The first payday of July was on Friday July 2nd. The following partial calendar shows these days and dates: Sunday Monday Tuesday Wednesday Thursday Friday Saturday June 20 June 21 June 22 June 23 June 24 June 25 June 26 June 27 June 28 June 29 June 30 July 1 July 2 July 3 The following table shows the amount the employees were paid on Friday June 25th and on Friday July 2nd. The table also shows the data required to calculate the amount the employees earned for the last three workdays of June. Wages paid on Friday, June 25th ......................... $6,200 Wages paid on Friday, July 2nd ........................... $5,950 Data for June 28, 29, & 30 – the last three days worked in June: Number of employees working each day ............ 10 employees per day Hours each employee worked per day ................. 8 hours per day Hourly wage rate ................................................. $16 per hour The following is a partial list of the accounts in Baker’s General Ledger. These are the only accounts you need for this problem. Cash Wages Payable Wages Expense Requirement 1 Prepare the General Journal entry to record the wage payment made to the employees on Friday June 25th . Requirement 2 Calculate the total amount the employees earned for: Monday June 28th + Tuesday June 29th + Wednesday June 30th . Requirement 3 Prepare the June 30 General Journal adjusting entry for Wages Payable. Requirement 4 Prepare the General Journal entry to record the wage payment made to the employees on Friday July 2nd . Hint: A portion of the wage payment is paying-off the Wages Payable liability that was recorded in the June 30th adjusting entry, and a portion of the wage payment is Wages Expense for the month of July.
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Baker Construction, Inc. pays its employees each Friday for the work they performed that week.
Baker’s employees only work on Monday through Friday. They do not work on Saturday or
Sunday. Baker produces monthly financial statements; thus they prepare
end of each month.
For the month of June, the last payday was on Friday June 25th. The last day of June was on
Wednesday June 30th. The first payday of July was on Friday July 2nd. The following partial
calendar shows these days and dates:
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
June 20 June 21 June 22 June 23 June 24 June 25 June 26
June 27 June 28 June 29 June 30 July 1 July 2 July 3
The following table shows the amount the employees were paid on Friday June 25th and on Friday
July 2nd. The table also shows the data required to calculate the amount the employees earned
for the last three workdays of June.
Wages paid on Friday, June 25th ......................... $6,200
Wages paid on Friday, July 2nd ........................... $5,950
Data for June 28, 29, & 30 – the last three days worked in June:
Number of employees working each day ............ 10 employees per day
Hours each employee worked per day ................. 8 hours per day
Hourly wage rate ................................................. $16 per hour
The following is a partial list of the accounts in Baker’s General Ledger. These are the only
accounts you need for this problem.
Cash
Wages Payable
Wages Expense
Requirement 1
Prepare the General
Friday June 25th
.
Requirement 2
Calculate the total amount the employees earned for:
Monday June 28th + Tuesday June 29th + Wednesday June 30th
.
Requirement 3
Prepare the June 30 General Journal adjusting entry for Wages Payable.
Requirement 4
Prepare the General Journal entry to record the wage payment made to the employees on
Friday July 2nd
.
Hint: A portion of the wage payment is paying-off the Wages Payable liability that was recorded
in the June 30th adjusting entry, and a portion of the wage payment is Wages Expense for
the month of July.
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