Chelsea Services Company Pays Its Staff Their Wages Every Friday $$\begin{array} { | l | r | r | } \hline \quad\quad\quad&\quad&\quad \\\hline \\\hline \\\hline\end{array}$$

question 32

Essay

Chelsea Services Company pays its staff their wages every Friday.The staff works a five-day work week and the payroll amounts to $25,000 per week.The last day of January fell on a Tuesday,and an adjustment entry was made on that date to accrue wage expense.On Friday,February 3,Chelsea Company pays out $25,000 in wages as usual.Please provide the entry needed at the time the wages are paid.
$$\begin{array} { | l | r | r | } \hline \quad\quad\quad&\quad&\quad \\\hline \\\hline \\\hline\end{array}$$

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Definitions:

Assets

Resources owned or controlled by a business, expected to produce future economic benefits.

Owner's Equity Statement

A financial statement showing the changes in the equity of a business entity over a period of time.

Revenues

The income generated from normal business operations and includes discounts and deductions for returned merchandise.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenues.