Total wages per week are $4,800.You need to accrue $4,000 of wages.The adjusting entry would include which of the following?
A)Credit Wages Expense,$4,000; debit Wages Payable,$4,000
B)Debit Wages Expense,$4,000; credit Wages Payable,$4,000
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 reflect the amount of wages that have been earned but not yet paid, which is $4,000. Therefore, Wages Expense should be debited for $4,000 and Wages Payable should be credited for $4,000. Option A is incorrect because it would decrease the Wages Payable by $4,000, which is the opposite of what is needed. Option C is incorrect because it would overstate the amount of Wages Expense by including the amount of wages that have already been paid. Option D is incorrect because it does not reflect the accrual of wages earned but not yet paid.

Total Wages Per Week Are $4,800