During the month of September,AppGame Company wrote checks to employees totaling $8,100 for wages earned in September.Which of the following is the correct entry?
A) Debit Salaries and Wages Expense for $8,100 and credit Salaries and Wages Payable for $8,100
B) Debit Cash for $8,100 and credit Salaries and Wages Expense for $8,100
C) Debit Salaries and Wages Expense for $8,100 and credit Cash for $8,100
D) Debit Cash for $8,100 and credit Salaries and Wages Payable for $8,100

Question

Quizplus · Accepted Answer

The entry should record the payment of wages earned by employees. This means the company is reducing its liability (the amount owed to employees for their services) and decreasing its cash balance (the amount paid to employees). Option C records the debit to Salaries and Wages Expense (an expense account) and the credit to Cash (an asset account) for the amount of $8,100, correctly reflecting the decrease in both liability and cash. Option A would increase the liability with a credit to Salaries and Wages Payable, which is not accurate since the company is paying the amount owed. Option B would debit cash twice and not record the expense, and option D would increase the liability instead of decreasing it.

During the Month of September,AppGame Company Wrote Checks to Employees