Mrs. Beard's Bagels has 6 employees who are paid $12 per hour. At December 31, each of Mrs. Beard's employees had worked 18 hours which had not been paid or recorded. Prior to adjustments, the company's trial balance showed $85,700 in the wages expense account.
If Mrs. Beard makes the appropriate adjusting entry, how much will be reported on the December 31 income statement as wage expense?
A) $85,700
B) $84,404
C) $ 1,296
D) $86,996

Question

Quizplus · Accepted Answer

The correct adjusting entry for the unpaid wages is 6 employees * 18 hours each * $12 per hour = $1,296. Adding this to the previously recorded wage expense of $85,700 gives a total wage expense of $86,996.

Mrs Beard's Bagels Has 6 Employees Who Are Paid $12