What is the journal entry-prepares financial statements

Assignment Help Financial Accounting

Reference no: EM131267815

PC Company has a daily payroll of $1,500, five days a week. The employees are paid every Friday for that week's wages. PC Company prepares financial statements for the period ending Wednesday July 31, and the employees were paid $7,500 on Friday August 2. What is the journal entry on August 2, assuming the appropriate adjusting entry was made on July 31?

A. Cash 7500 Prepaid wages 4500 Unearned wages 3000

B. Wage expense 3000 Unearned wages 4500 Cash 7500

C. Wage expense 7500 Cash 7500

D. Prepaid wages 4500 Wage expense 3000 Cash 7500

E. Wage expense 3000 Wages payable 4500 Cash 7500

Reference no: EM131267815

Questions Cloud

Transactions would not affect stockholders equity : Which of the following transactions would not affect stockholders’ equity? The following amounts were reported for Pacific Corporation at the end of their first year of operations: contributed capital $100,000; sales revenue $400,000; total assets $3..

What causes balance sheet exposure to foreign exchange risk : What are the two major issues related to the translation of foreign currency financial statements, and what causes balance sheet (or translation) exposure to foreign exchange risk? How does balance sheet exposure compare with transaction exposure?

Ratios to stockholders equity section of the balance sheet : Let's also talk about related and commonly used ratios to the Stockholders' Equity section of the Balance sheet... how are Earnings per Share and the Price to Earnings ratios calculated?? What does the P/E ratio indicate and how is it used by investo..

Translation of foreign currency financial statements : What are the two major issues related to the translation of foreign currency financial statements, and what causes balance sheet (or translation) exposure to foreign exchange risk? How does balance sheet exposure compare with transaction exposure?

What is the journal entry-prepares financial statements : PC Company has a daily payroll of $1,500, five days a week. The employees are paid every Friday for that week's wages. PC Company prepares financial statements for the period ending Wednesday July 31, and the employees were paid $7,500 on Friday Augu..

What is minimum number of shares you need to own to ensure : The shareholders of the Pickwick Paper Company need to elect eight directors. There are 200,000 shares outstanding. What is the minimum number of shares you need to own to ensure that you can elect at least one director if the company has majority vo..

Expanding rapidly-currently needs to retain all of earnings : Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Computech to begin paying dividends, beginning with a dividend of $1.75 coming 3 years from toda..

Prepare the journal entry to record the redemption : On January 2, 2012, Concord Corporation issued $1,700,000 of 10% bonds at 97 due December 31, 2021. Interest on the bonds is payable annually each December 31. The discount on the bonds is also being amortized on a straight-line basis over the 10 yea..

Determine the annual cash flow for each year : DataPoint Engineering is considering the purchase of a new piece of equipment for $370,000. It has an eight-year midpoint of its asset depreciation range (ADR). It will require an additional initial investment of $190,000 in nondepreciable working ca..

User Account

All Pages