Assume Reversing Entries Are Made by the Entity

question 23

Multiple Choice

Assume reversing entries are made by the entity. If wages of $2600 were accrued at the end of the year and the first payment of wages the following year was $33 100 how would this payment be recorded?

• A) DR Salaries payable $2600; DR Salaries expense $30 500; CR Cash $33 100
• B) DR Salaries expense $35 700; CR Salaries payable $2600; CR Cash $33 100
• C) DR Salaries payable $2600; DR Salaries expense $33 100; CR Cash $35 700
• D) DR Salaries expense $33 100; CR Cash $33 100

---

Definitions:

Resisting Change

The opposition or reluctance to alter existing conditions or practices.

Socioeconomic Model

A framework that explores the social and economic factors that influence individual or community behavior and outcomes.

Classical Economic

Pertains to the original economic theories and principles laid out by economists such as Adam Smith, focusing on market dynamics and efficiency.

Stakeholders

Individuals or groups with an interest or concern in the success and activities of a business or project, including employees, customers, investors, and the community.