The following adjusting journal entry found in the journal is missing an explanation. Select the best explanation for the entry.
A) Record the payment of wages.
B) Record wages that were paid last month.
C) Record wages paid in advance.
D) Record wages expense incurred and to be paid next month.

Question

The following adjusting journal entry found in the journal is missing an explanation. Select the best explanation for the entry. 
A) Record the payment of wages. 
B) Record wages that were paid last month. 
C) Record wages paid in advance. 
D) Record wages expense incurred and to be paid next month.

Quizplus · Accepted Answer

The entry is adjusting wages expense incurred but not yet paid at the end of the current month, which will be paid in the following month. It is a necessary adjustment to accurately reflect the expense and liability on the financial statements.

The Following Adjusting Journal Entry Found in the Journal Is