The following adjusting journal entry found in the journal is missing an explanation. Select the best explanation for the entry.
A) Record payment of wages.
B) Record wages 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 payment of wages. 
B) Record wages 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 recording wages expense that has been incurred but not yet paid, indicating that it is an accrual of expense. The wording "to be paid next month" suggests that this is an adjusting entry to ensure that the correct amount of expenses are included in the correct accounting period.

The Following Adjusting Journal Entry Found in the Journal Is