The entry made at the end of the accounting period to record wages incurred but unpaid is:
A) Wages Expense      Wages Payable
B) Wages Expense      FICA Taxes Payable-OASDI
     FICA Taxes Payable-HI
     FIT Payable
     Wages Payable
C) Wages Payable      Cash
D) Wages Expense      Cash
E) Wages Expense Payroll Taxes
     Wages Payroll

Question

The entry made at the end of the accounting period to record wages incurred but unpaid is:
A) Wages Expense      Wages Payable
B) Wages Expense      FICA Taxes Payable-OASDI
     FICA Taxes Payable-HI
     FIT Payable
     Wages Payable
C) Wages Payable      Cash
D) Wages Expense      Cash
E) Wages Expense Payroll Taxes
     Wages Payroll

Quizplus · Accepted Answer

The entry to record wages incurred but unpaid is to debit Wages Expense (an income statement account) and credit Wages Payable (a liability account). This reflects the fact that the company owes its employees for their work but has not yet paid them. The other options include additional accounts (e.g. FICA Taxes Payable, FIT Payable), which are not necessary for this entry, or incorrect accounts (e.g. Cash), which do not reflect the fact that the wages have not been paid yet.

The Entry Made at the End of the Accounting Period