The Employees of Solo Company Employees Worked During April but Are

question 71

Multiple Choice

The employees of Solo Company employees worked during April but are not paid their wages totaling $500 until May.Which of the following best indicates how to account for this transaction in April?

• A) No journal entry needs to be made because payment has not yet been made.
• B) A journal entry with a debit to Salaries and Wages Expense and a credit to Unearned Expense for $500 should be recorded.
• C) A journal entry with a debit to Salaries and Wages Payable and a credit to Salaries and Wages Expense for $500 should be recorded.
• D) A journal entry with a debit to Salaries and Wages Expense and a credit to Salaries and Wages Payable for $500 should be recorded.

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Definitions:

Production

The process of creating goods and services from various inputs like labor, technology, and raw materials.

Coal-Fired Plants

Power plants that produce electricity through the combustion of coal, a fossil fuel.

Electricity Generation

The process of producing electrical power from various energy sources, such as fossil fuels, nuclear power, or renewable energy sources.

Energy Information Administration

A U.S. government agency responsible for collecting, analyzing, and disseminating independent and impartial energy information to promote sound policymaking, efficient markets, and public understanding.