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Wages Accrual and Padilla Industries Account Payable Balance

1. Cindi's Candies paid employee wages on and through Friday, January 26, and the next payroll will be paid in February. There are three more working days in January (29-31). Employees work 5 days a week and the company pays $900 a day in wages. What will be the adjusting entry to accrue wages expense at the end of January?

Wages Expense
2,700

Wages Payable
2,700

No adjusting entry is required.

Wages Expense
900

Wages Payable
900

Wages Expense
4,500

Wages Payable
4,500

2. At October 1, 2010, Padilla Industries had an accounts payable balance of $30,000. During the month, the company made purchases on account of $25,000 and made payments on account of $40,000. At October 31, 2010, the accounts payable balance is

$15,000.

$10,000.

$40,000.

$30,000.

Solution Preview

1. Cindi's Candies paid employee wages on and through Friday, January 26, and the next payroll will be paid in February. There are three more working days in January (29-31). Employees work 5 ...

Solution Summary

Solution helps in estimating wages accrual; Padilla Industries account payable balance

$2.19