Assume That the City of Juneau Maintains Its Books and Records

question 34

Multiple Choice

Assume that the City of Juneau maintains its books and records to facilitate the preparation of its fund financial statements.The City pays its employees bi-weekly on Friday.The fiscal year ended on Wednesday, June 30.Employees had been paid on Friday, June 25.The employees paid from the General Fund had earned $120,000 on Monday, Tuesday, and Wednesday (June 28, 29, and 30) .They will earn $80,000 on Thursday and Friday (July 1 and 2) .What entry, if any, should be made on June 30?

• A)Debit Expenditures $120,000; Credit Wages and Salaries Payable $120,000.
• B)Debit Expenditure $200,000; Credit Wages and Salaries Payable $200,000.
• C)Debit Expenses $120,000; Credit Wages and Salaries Payable $120,000.
• D)No entry is required.

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Definitions:

Increasing-Cost Industry

An industry in which the costs of production increase as the industry grows and decreases as it contracts.

Resource Prices

The costs associated with acquiring inputs used in the production process, such as labor, materials, and capital.

Industry Expands

The process of growth within a particular sector or industry, marked by increased production, innovation, and possibly the entrance of new firms.

Economic Profits

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, representing the excess return over the firm's opportunity costs.