Kline Company accrued wages of $7,350 that were earned by employees unpaid at the end of 2014.Assuming Kline uses reversing entries,which of the following entries is appropriate for reversing the accrued wages at the beginning of 2015?
A)Debit Wages Expense $7,350;credit Cash $7,350.
B)Debit Wages Expense $7,350;credit Wages Payable $7,350.
C)Debit Wages Payable $7,350;credit Cash $7,350.
D)Debit Cash $7,350;credit Wages Expense $7,350.
E)Debit Wages Payable $7,350;credit Wages Expense $7,350.

Question

Quizplus · Accepted Answer

The appropriate entry for reversing the accrued wages at the beginning of 2015 would be to debit Wages Payable $7,350 and credit Wages Expense $7,350. This will reverse the original entry made at the end of 2014 and ensure that the wages expense is recorded in the correct period. Option A is incorrect because it would decrease the wages expense account instead of reversing the accrued wages. Option B is incorrect because it would increase the wages payable account instead of reversing the accrued wages. Option C is incorrect because it would decrease the wages payable account instead of reversing the accrued wages. Option D is incorrect because it would increase the wages expense account instead of reversing the accrued wages.

Kline Company Accrued Wages of $7,350 That Were Earned by Employees