Van Halen Company pays weekly wages every Friday.The current month ends on a Wednesday.The adjusting entry for wages will _____.
A)increase expenses and decrease cash
B)increase assets and increase expenses
C)increase liabilities and increase expenses
D)decrease liabilities and decrease cash.

Question

Quizplus · Accepted Answer

C) The adjusting entry for wages that have been earned but not yet paid will increase wages expense (increasing expenses) and increase wages payable (increasing liabilities), reflecting the obligation to pay the employees for the days worked before the month-end.

Van Halen Company Pays Weekly Wages Every Friday