Assume That No Reversing Entries Are Made by This Firm

question 35

Multiple Choice

Assume that no reversing entries are made by this firm. If wages of $12 400 were accrued by it at the end of the year and the first payment of wages in the subsequent year was $110 500 how would this payment be recorded?

• A) Debit salaries payable $12 400; debit salaries expense $98 100; credit cash $110 500
• B) Credit salaries payable $12 400; debit salaries expense $122 900; credit cash $110 500
• C) Debit salaries payable $12 400; debit salaries expense $110 500; credit cash $122 900
• D) Debit salaries expense $98 100; credit cash$98 100

---

Definitions:

Gutter Margin

The space added to the side or top margin of a document in preparation for binding.

Paragraph Alignment

The adjustment of text within a document to appear in a specified format, such as aligned to the left, right, centered, or justified.

Binding

The process of associating or connecting two pieces of information or data together in a programming or database context.

Cross Reference

A reference in a document to another section, figure, table, or external document, designed to provide additional information or context.