Pro Incorporated operates five days per week with a daily payroll of $5,000. Employees are paid every Saturday for the workweek just completed (Monday through Friday) . The last day of the month is Wednesday, October 31. What is the effect of the correct adjustment at October 31?
A) Increases stockholders' equity and wages payable by $15,000
B) Increases wages payable and decreases cash by $10,000
C) Decreases stockholders' equity and increases wages payable by 15,000
D) Increases wages payable and increases wages expense by $25,000
Correct Answer:
Verified
Q70: The supplies account has a balance of
Q71: Saturn Co. rented out office space to
Q72: Game Systems Corporation has grown significantly over
Q73: Failure to record amounts earned for services
Q74: On October 1, 2012, Glover Company borrowed
Q78: The asset account, Supplies, has a balance
Q80: Which one of the following adjustments increases
Q114: Failure to record dividends paid would result
Q118: Failure to record the earned portion of
Q120: Which one of the following adjustments decreases
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents