A company pays wages of $12,500 at the end of each 5-day work week.
A)What is the standard entry for wages paid on each pay date?  B)Assuming the company's year-end falls on a Wednesday, prepare the necessary journal entries on December 31st and on the January 2nd pay date.

What will be an ideal response?

 DateAccountsDebitCreditA)xxxWages Expense12,500    Cash 12,500      B)Dec. 31Wages Expense ($12,500 × 3/5)7,500    Wages Payable 7,500       Jan. 2Wages Expense ($12,500 × 2/5)5,000   Wages Payable7,500    Cash 12,500

Business

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