Recording Salary Expense Grover Company reported wages payable of $45,000 at November |. During the month of November, additional wages of $290,000 were earned by employees and a total of $275,000 was paid to employees. The payment by Grover was recorded with the following journal entry:

a. If Grover records no other entries relating to wage expense or wages payable during November, will reported net income for November be understated or overstated?
By what amount?

b. What adjusting entry must Grover Company record on November 30 to correct the account balances?

Transcribed Image Text:

Wages Payable Wage Expense Cash 45,000 230,000 275,000