Emory Cooperates Five Days Per Week with a Daily Payroll of of $4,000.Employees

question 118

Multiple Choice

Emory Co.operates five days per week with a daily payroll of $4,000.Employees are paid every Saturday for the workweek just completed (Monday through Friday) .The last day of the month is Wednesday, March 31.What is the effect of the correct adjustment at March 31?

• A) Increases stockholders' equity and Wages Payable by $8,000
• B) Increases Wages Payable and decreases Cash by $12,000
• C) Decreases stockholders' equity and increases Wages Payable by $12,000
• D) Increases Wages Payable and increases Wages Expense by $8,000

---

Definitions:

Unforeseeable Event

An event that cannot be anticipated or predicted with reasonable accuracy.

Implied Assumption

An unstated understanding or expectation inherent in a situation or agreement.

Known Risk

A hazard or risk that is identified or anticipated before an activity or decision is made.

Plaintiff

The party who initiates a lawsuit by making a complaint against another party, called the defendant, in a court of law.