Which of the following would be the adjusting journal entry to recognize earned but unpaid wages for the period?
Understand the Problem
The question is asking for the correct adjusting journal entry to recognize wages that have been earned but not yet paid. This involves understanding the accrual basis of accounting and how to accurately record liabilities and expenses.
Answer
Dr. Wages Expense, Cr. Wages Payable
The final answer is Dr. Wages Expense, Cr. Wages Payable.
Answer for screen readers
The final answer is Dr. Wages Expense, Cr. Wages Payable.
More Information
Adjusting entries for accrued wages involve debiting Wages Expense to reflect the expense that has occurred, and crediting Wages Payable to recognize the liability for the wages that have not yet been paid.
Tips
A common mistake is confusing cash transactions with accrued expenses—they are not the same.
Sources
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