Total wages per week are $4,800.You need to accrue $5,000 of wages.The adjusting entry would include which of the following?
A)Credit Wages Expense,$5,000;debit Wages Payable,$5,000
B)Debit Wages Expense,$5,000;credit Wages Payable,$5,000
C)Debit Wages Expense,$4,800;credit Wages Payable,$4,800
D)Debit Wages Expense,$4,800;credit Cash,$4,800

Question

Quizplus · Accepted Answer

The adjusting entry should debit Wages Expense for the amount that needs to be accrued (in this case, $5,000) and credit Wages Payable for the same amount. This reflects the fact that the company has incurred labor costs that have not yet been paid out as wages. Option A is incorrect because it credits Wages Expense (which would reduce the expense account) instead of debiting it. Option C is incorrect because it only reflects the actual amount of wages paid, not the amount that needs to be accrued. Option D is incorrect because it suggests that the entire amount of wages has already been paid out in cash, which is not the case.

Total Wages Per Week Are $4,800