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 adjusting entry is recording wages expense that has been incurred but not yet paid at the end of the current accounting period, which will be paid in the following month. This is known as accrued wages expense.

The Following Adjusting Journal Entry Found in the Journal Is