What would be the accounting entry for tiara ltd

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Tiara Ltd employs its staff on a five-day work week, with employees being paid on Fridays. The weekly salaries expense is $15,000 and employees are paid in arrears (That is, when the employees are paid, the salaries paid are for work performed in the preceding week).

Tiara Ltd retains $2,000 per week to pay the Australian Taxation Office for pay-as-you-go (PAYG) tax on behalf of the employees. This is paid on the following Monday of each week. It also retains $600 per week to pay staff premiums to the Oceanic Medical Benefits Fund.

Problem 1: If we assume that the end of the reporting period falls on a Wednesday, what would be the accounting entry at the end of the reporting period to recognise three days' salary, wages expense PAYG payment to tax office & premiums payment to the Oceanic Medical Benefits Fund? Provide all the calculations in detail (no calculations meaning no marks). Also, provide Entry/ies for Friday & Monday.

Reference no: EM133012272

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