At the end of an accounting period wages expense of $190 000 is closed to the profit and loss summary account. The wages are made up of $180 000 paid in cash and accrued wages of $10 000. A reversing entry is made for accrued wages on the first day of the next accounting period. The first payment to employees for wages in the new year is $25 000. How would this payment be recorded?
A) Debit wages expense $15 000; debit accrued wages $10 000; credit bank $25 000
B) Debit wages expense $25 000; credit bank $25 000
C) Debit wages expense $15 000; credit bank $15 000
D) Debit accrued wages $10 000; credit bank $10 000

Question

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The first payment to employees for wages in the new year is $25,000. This payment is recorded as a debit to wages expense for $25,000 and a credit to bank for $25,000.

At the End of an Accounting Period Wages Expense of $190