Elwood Paragliders Pty Ltd reports monthly. Wages were paid on the last Friday of each month. On Thursday 30 June 2024, wages owing to employees (workers) totalled $2,400. Elwood Paragliders Pty Ltd adopts the accrual method of profit determination.
Additional Information:
Wages of $14,800 were paid on 31 July 2024.
Elwood Paragliders Pty Ltd adopts the accrual method of profit determination.
Required:
The journal entry to record the wages payment of $14,800 on 31 July 2024 by Elwood Paragliders Pty Ltd would be.
O Debit (DR): Cash $14,800 and Credit (CR): Wages $12,400; Credit (CR): Wages (Accrued) payable $2,400O Debit (DR): Wages expense $12,400 and Credit (CR): Cash $12,400.
O Debit (DR): Wages expense $14,800 and Credit (CR): Cash $14,800
O Debit (DR): Wages (Accrued) payable $2,400 and Credit (CR): Cash $2,400
O Debit (DR): Wages expense $12,400; Debit (DR): Wages (Accrued) payable $2,400 and Credit (CR): Cash $14,800.
The journal entry to record the wages payment of $14,800 on 31 July 2024 by Elwood Paragliders Pty Ltd would be: O Debit (DR): Wages expense $12,400; Debit (DR): Wages (Accrued) payable $2,400 and Credit (CR): Cash $14,800.
This entry reflects the recognition of the wages expense for the amount that had been accrued as of 30 June ($12,400) and the payment of the total wages due, including the accrual from the previous period ($2,400) and the wages earned in July but not yet paid ($12,400).
