A business paid $725 for employees' wages at the end of the week.The debit and credit entries are:

Question

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Since the business paid for employees' wages, it incurred a Wages expense. Therefore, the entry should be a Debit to Wages expense and a Credit to Cash. Option D is the only choice that accurately reflects this. Option A is incorrect because Equity is not affected by the payment of wages. Option B is incorrect because it puts Cash on the Credit side instead of the Debit side. Option C is incorrect because it puts Equity on the Debit side instead of the Credit side.

A Business Paid $725 for Employees' Wages at the End