A Company Pays Its Workforce on Fridays for a Five-Day

question 128

Multiple Choice

A company pays its workforce on Fridays for a five-day workweek ending on that day.The payroll for a week is $100,000.If the accounting year-end falls on a Tuesday,the adjusting journal entry to record this will include a

• A) debit to Salaries and Wages Expense $100,000.
• B) debit to Salaries and Wages Expense $40,000.
• C) credit to Salaries and Wages Payable $60,000.
• D) credit to Salaries and Wages Payable $100,000.

---

Definitions:

Debt Contract

A legal agreement outlining the terms under which money has been borrowed and must be repaid, including the interest rate and maturity date.

Debtholder

An individual or institution that lends money to a company or government, thus owning its debt securities such as bonds.

Inventory Period

This refers to the time it takes for a company to sell its inventory and convert it into sales. It's a measure of efficiency and inventory management.

Acquisition

The process by which one company takes over another company to control its assets, operations, and management.