A company incurred $5,000 in wages for employees for the year.$4,500 of these wages were paid by the end of the year.Choose the TRUE statement.
A)Wages payable on the income statement will be $4,500.
B)Wages expense on the income statement will be $500.
C)Wages expense on the balance sheet will be $5,000.
D)Wages payable on the balance sheet will be $500.

Question

Quizplus · Accepted Answer

Wages payable on the balance sheet will be $500 because it represents the amount of wages incurred but not yet paid by the end of the year ($5,000 incurred - $4,500 paid = $500 payable).

A Company Incurred $5,000 in Wages for Employees for the Year.$4,500