Kline Company, Inc. 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?

Question

Quizplus · Accepted Answer

Since the accrued wages were already recognized as an expense in 2014, the reversing entry should credit the expense account and debit the liability account. Option E is the only one that is debiting Wages Payable and crediting Wages Expense, which would reverse the original entry.