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Problem - Wages Payable - Denton Corporation employs 50 workers in its plant. Each employee is paid $10 per hour and works seven hours per day, Monday through Friday. Employees are paid every Friday. The last payday was Friday, September 19.
Required -
1. Compute the dollar amount of the weekly payroll.
2. Prepare the journal entry on Friday, September 26, for the payment of the weekly payroll.
3. Denton prepares monthly financial statements. Prepare the adjusting journal entry on Tuesday, September 30, the last day of the month.
4. Prepare the journal entry on Friday, October 3, for the payment of the weekly payroll.
5. Will net income for the month of September be understated or overstated if Denton doesn't bother with an adjusting entry on September 30? Explain your answer.
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