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, 2011 you owe your employees one week of salary that will be paid on January 8, 2012. 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 12/31/2011