The following adjusting journal entry found in the journal is missing an explanation. Select the best explanation for the entry. $$\begin{array} { | c | c | c | }
\hline \text { Wages Expense } & 4,500 & \
\hline \text { Wages Payable } & & 4,500 \
\hline ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? & & \
\hline
\end{array}$$
A) Record payment of wages.
B) Record wages paid last month.
C) Record wages paid in advance.
D) Record wages expense incurred and to be paid next month.

Question

The following adjusting journal entry found in the journal is missing an explanation. Select the best explanation for the entry. $$\begin{array} { | c | c | c | } 
\hline \text { Wages Expense } & 4,500 & \
\hline \text { Wages Payable } & & 4,500 \
\hline ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? & & \
\hline
\end{array}$$
A) Record payment of wages.
B) Record wages paid last month.
C) Record wages paid in advance.
D) Record wages expense incurred and to be paid next month.

Quizplus · Accepted Answer

The entry records wages expense incurred during the current period that have not yet been paid, thus creating a liability (wages payable) to be settled in the future.

The Following Adjusting Journal Entry Found in the Journal Is