Which of the following describes the transaction resulting in a journal entry with a debit to Wages Payable and a credit to Cash?
A)Wages expense has been incurred but is unpaid.
B)Cash was used to pay for wages that were previously recorded as an expense.
C)Cash was used to pay for wages that were not previously recorded as an expense.
D)Cash was used to prepay employee wages.

Question

Quizplus · Accepted Answer

This transaction reflects the payment of wages that had previously been recorded as an expense and accrued as a liability (Wages Payable). When the company pays off this liability with cash, it debits Wages Payable to decrease the liability and credits Cash to reflect the outflow of cash.

Which of the Following Describes the Transaction Resulting in a Journal