If the last wages bill for the year is paid on 28 June and $6000 is owing at 30 June in unpaid wages,then:
A) the $6000 would appear as accrued wages payable in the balance sheet but it would not be included in the expenses for the year.
B) the $6000 would appear as accrued wages payable in the balance sheet and would be included in the expenses for the year.
C) the $6000 would not be included in either the balance sheet or the profit and loss statement.
D) the $6000 would appear as an expense in the profit and loss statement.

Question

Quizplus · Accepted Answer

The $6000 would appear as accrued wages payable in the balance sheet, as it is a liability that the business owes but has not paid as of the end of the accounting period. It would also be included in the expenses for the year, as it represents wages earned by employees in the current accounting period but not paid until the next period. Therefore, option B is the correct answer.

If the Last Wages Bill for the Year Is Paid