Assume That No Reversing Entries Are Made by the Entity

question 25

Multiple Choice

Assume that no reversing entries are made by the entity. How would the entity record the transaction for payment of wages if $5200 was accrued for wages at the end of the year and the first payment of wages in the following year was $63 900?

• A) DR Salaries expense $63 900; CR Cash $63 900
• B) DR Salaries payable $5200; DR Salaries expense $58 700; CR Cash $63 900
• C) DR Salaries expense $63 900; CR Salaries payable $5200; CR Cash $58 700
• D) DR Salaries expense $69 100; CR Salaries payable $5200; CR Cash $63 900