Financial Accounting Answers

Jan.

4

Paid cash to Lyn Addie for five days' work at the rate of 125 per day. Four of the five days relate to wages payable that were accrued in the prior year.

For the accrued wages of previous year, the following entries must have been passed:

-On Closing day:

Dr Wages .................... 500

Cr Accrued wages ................... 500

• On first day of next year, the entry must have been reversed:

Dr Accrued wages ..... 500

Cr Wages* ...................................500

In view of '', the entire wages(including last year's wages) will be debited to Wages A/c. '' will take care of the debit.

Dr wages ................... 625

Cr Cash/Bank .............................. 625

5

Adriana Lopez invested an additional 25,000 cash in the...