Entity A pays salaries on a bi-monthly basis. Entity A has 10 employees, each earning ₱20,000 per month. During the month of April 20x1, none of the employees were absent, late or have rendered overtime service. Which of the following is correct regarding the timing of recognition and the amount of salaries expense recognized on the first payday in the month of April 20x1?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Entity A pays salaries on a bi-monthly basis. Entity A has 10 employees, each earning ₱20,000 per month. During the month of April 20x1, none of the employees were absent, late or have rendered overtime service. Which of the following is correct regarding the timing of recognition and the amount of salaries expense recognized on the first payday in the month of April 20x1?

Amount recognized
Timing of recognition
April 1
April 15
April 1
April 15
а.
20,000
b.
200,000
C.
100,000
d.
100,000
Transcribed Image Text:Amount recognized Timing of recognition April 1 April 15 April 1 April 15 а. 20,000 b. 200,000 C. 100,000 d. 100,000
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