At the End of an Accounting Period Wages Expense of $190

question 21

Multiple Choice

At the end of an accounting period wages expense of $190 000 is closed to the profit and loss summary account. The wages are made up of $180 000 paid in cash and accrued wages of $10 000. A reversing entry is made for accrued wages on the first day of the next accounting period. The first payment to employees for wages in the new year is $25 000. How would this payment be recorded?

• A) Debit wages expense $15 000; debit accrued wages $10 000; credit bank $25 000
• B) Debit wages expense $25 000; credit bank $25 000
• C) Debit wages expense $15 000; credit bank $15 000
• D) Debit accrued wages $10 000; credit bank $10 000

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Definitions:

Sleeping Position

The posture in which a person sleeps, which can impact physical health and sleep quality.

Cephalocaudal Principle

Principle that development proceeds in a head-to-tail direction, that is, that upper parts of the body develop before lower parts of the trunk.

Proximodistal Principle

Principle that development proceeds from within to without, that is, that parts of the body near the center develop before the extremities.

Proximodistal

Refers to the pattern of development that moves from the center or core of the body outward towards the extremities.