If an adjusting entry is made on the last day of the current accounting period by debiting Wages Expense and crediting Wages Payable for accrued wages earned but not yet paid, a reversing entry on the first day of the next accounting period will
A) debit Wages Expense and credit Wages Payable.
B) debit Cash and credit Wages Expense.
C) debit Miscellaneous Expense and credit Wages Expense.
D) debit Wages Payable and credit Wages Expense.

Question

Quizplus · Accepted Answer

A reversing entry is made to cancel out the adjusting entry from the previous period. Since the adjusting entry debited Wages Expense and credited Wages Payable, the reversing entry does the opposite: it debits Wages Payable and credits Wages Expense. This prepares the accounts for the actual payment of wages.

If an Adjusting Entry Is Made on the Last Day