Problem 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
Problem 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.