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Analyzing and Journalizing Payroll Transactions

Kelsey Gunn is the only employee of Arsenault Company. His pay rate is $23.00 per hour with an overtime rate of 1 and 1/2 times for hours over 40 in a work week. For the week ending March 31,2010, he worked 48 hour. Calculate the gross pay for the week using the overtime premium approach to calculate gross pay. Since rthe company holds back one week of pay, Gunn will not be paid until April 7, 2010. What adjusting entry would the company make in order to record Gunn's salary in the first quarter of this year?

a Regular pay
b Overtime pay
c Gross pay
d Adjusting entry

Solution Summary

Kelsey Gunn is the only employee of Arsenault Company. His pay rate is $23.00 per hour with an overtime rate of 1 and 1/2 times for hours over 40 in a work week. For the week ending March 31,2010, he worked 48 hour. Calculate the gross pay for the week using the overtime premium approach to calculate gross pay. Since rthe company holds back one week of pay, Gunn will not be paid until April 7, 2010. What adjusting entry would the company make in order to record Gunn's salary in the first quarter of this year?

a Regular pay
b Overtime pay
c Gross pay
d Adjusting entry

$2.19