Which of the Following Journal Entries Is Recorded Correctly and in the Basic

question 261

Multiple Choice

Which of the following journal entries is recorded correctly and in the basic format?

• A)\[\begin{array}{l}
• \text { Salaries and Wages Expense } \quad 550\\
• \begin{array} { c c c }
• \text { Cash } & & 1,500 \\
• \text { Advertising Expense } & 950 &
• \end{array}
• \end{array}\]
• B)Salaries and Wages Expense \( \quad 550 \)
• Advertising Expense \( \quad 950 \)
• Cash\(\quad\)\(\quad\)\(\quad\)1,600
• C)\[\begin{array}{l}
• \text { Cash }\\
• \begin{array} { l l l }
• \text { Salaries and Wages Expense } & 1,500 & 550 \\
• \text { Advertising Expense } & 950
• \end{array}
• \end{array}\]
• D)Salaries and Wages Expense \( \quad 550 \)
• Advertising Expense \( \quad950 \)
• Cash\( \quad 1.500 \)

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Definitions:

Adjusted Trial Balance

A list of all accounts and their balances after adjusting entries have been made, serving as a check that the total debits equal the total credits before financial statements are prepared.

Accrued Fees

Fees that have been incurred but not yet paid, representing a liability on the balance sheet until they are settled.

Journalized

The act of recording a transaction in an accounting journal.

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories (assets, liabilities, and equities) in a balance sheet is represented as a proportion of the total account.