Kline Company accrued wages of $8,650 that were earned by employees unpaid at th

Question

Kline Company accrued wages of $8,650 that were earned by employees unpaid at the end of 2014. Assuming Kline uses reversing entries, which of the following entries is appropriate for reversing the accrued wages at the beginning of 2015?

Debit Wages Expense $8,650; credit Cash $8,650.

Debit Wages Expense $8,650; credit Wages Payable $8,650.

Debit Wages Payable $8,650; credit Cash $8,650.

Debit Cash $8,650; credit Wages Expense $8,650.

Debit Wages Payable $8,650; credit Wages Expense $8,650.

Kline Company accrued wages of $8,650 that were earned by employees unpaid at the end of 2014. Assuming Kline uses reversing entries, which of the following entries is appropriate for reversing the accrued wages at the beginning of 2015?

Explanation / Answer

Entry made in 2014:

Debit Wages Expense $8,650; credit Wages Payable $8,650

So, entry should be made in 2015 for reversing the accrued wages in 2014 is:
Debit Wages Payable $8,650; credit Wages Expense $8,650

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