Rogers Company's Employees Are Paid a Total of $1,600 Per

question 2

Essay

Rogers Company's employees are paid a total of $1,600 per day for a 5-day workweek.The employees are paid each Friday.This year the accounting period ends on Tuesday.Prepare the December 31 year-end adjusting journal entry Rogers Company should make to accrue wages.

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Definitions:

Real Wages

Nominal wages corrected for inflation.

Money Wages

The current dollar amount of a person’s wages.

Consumer Price Index

The most important measure of inflation. This tells us the percentage rise in the price level since the base year, which is set at 100; represented by CPI.

Effective Minimum Wage

The lowest wage that an employer can legally pay an employee, adjusted for factors such as living costs and inflation.