Accruing Wages Payable

If you have employees, chances are you owe them a certain amount of wages at the end of an accounting period. If so, an adjusting entry is required in your general journal.

As an example, on December 31, 2004 you owe your employees one week of salary that will be paid on January 7, 2005. The gross wages for that week are $1,512.00. Make the following general journal entry:

Debit Credit

Wages expense 1,512

Accrued wages 1,512

To accrue wages owed but unpaid on 12/31/2004