Total wages per week are $4,000. You need to accrue $5,800 of wages. The adjusting entry would include which of the following?
A) Credit Wages Expense, $5,800; debit Wages Payable, $5,800
B) Debit Wages Expense, $5,800; credit Wages Payable, $5,800
C) Debit Wages Expense, $4,000; credit Wages Payable, $4,000
D) Debit Wages Expense, $4,000; credit Cash, $4,000

Question

Quizplus · Accepted Answer

The correct answer is B) Debit Wages Expense, $5,800; credit Wages Payable, $5,800. This entry is made to record the total wages that need to be accrued, which is $5,800, not just the $4,000 in wages paid. This increases the expense for the period to reflect the total wages earned by employees, even if not all have been paid, and increases the liability for wages payable.

Total Wages Per Week Are $4,000