Question

Brown Co. pays weekly salaries of $10,500 on Friday for a five-day workweek ending on that day. Assuming the end of the accounting period ends on Wednesday, the adjusting journal entry will include a a.credit to Wages Expense for $6,300. b.credit to Wages Expense for $10,500. c.credit to Wages Payable for $6,300. d.credit to Wages Payable for $4,200.

Answer 1

Answer:

c.credit to Wages Payable for $6,300.

Explanation:

The journal entry to record the wages expense is shown below;

Wages expense dr ($10,500 × 3 ÷ 5) $6,300

      To Wages payable $6,300

(being the wages expense is recorded)

Here the wages expense is debited as it increased the expense and credited the wages payable as it increased the liabilities