If the last wages bill for the year is paid on 28 June and $8 000 is owing at 30 June in unpaid wages, then:
A) the $8 000 would appear as accrued wages payable in the balance sheet but it would not be included in the expenses for the year.
B) the $8 000 would appear as accrued wages payable in the balance sheet and would be included in the expenses for the year.
C) the $8 000 would not be included in either the balance sheet or the profit and loss statement.
D) the $8 000 would appear as an expense in the profit and loss statement.

Question

Quizplus · Accepted Answer

When wages have been earned by employees but have not yet been paid as of the end of the accounting period, they are classified as accrued wages payable and must be included in the balance sheet. Additionally, the $8,000 would also be included in the expenses for the year since they represent earned wages that have not yet been paid.

If the Last Wages Bill for the Year Is Paid