Candy Cane's ice cream shop,which opened in June,is a local hit.In July,Candy Cane hired a new employee at a rate of $1,200 per month to start work at the beginning of August.In July,Candy Cane should record:
A) nothing,because an exchange of promises is not a transaction.
B) a $1,200 increase to Prepaid Wages and a $1,200 decrease to Cash.
C) a $1,200 increase to Wage Expense and a $1,200 decrease to Cash.
D) a $1,200 increase in Wages Payable and a $1,200 increase in Wages Expense.
Correct Answer:
Verified
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