Accrued Payroll Expense

Another type of accrued expense that most companies will experience is accrued payroll.

Scenario:
The end of the year falls on a Wednesday of the current year. Payroll runs $500 per day and payroll expense is recorded up-to-date as of the past Friday.

Assuming that no one worked over the past weekend, how many days of payroll must be recorded?

:Total days of payroll that need to be accrued

How much payroll expense should be recorded?
Enter your answer as $x,xxx.

:Total amount of payroll expense adjustment

What account will be credited in the adjusting entry?
The answer is two words - all lower case

:The credit side of the payroll adjustment

© Jim Formosa 2002