easy · Financial Accounting accounting-cycle-financial-statements
A firm's employee wages for the last week of December are $4,500, to be paid on January 5.
What is the required adjusting entry on December 31 to comply with the matching principle?
- Debit Wages Payable $4,500; Credit Cash $4,500
- Debit Wage Expense $4,500; Credit Cash $4,500
- No entry is required until the cash is paid on January 5.
- Debit Wage Expense $4,500; Credit Wages Payable $4,500
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