11. (Multiple Choice)

Hernandez Company accrued wages of $350 on December 31. The company makes reversing entries. The proper entry on payday, January 5, to record a $1,200 payroll includes:

A. a credit to Wage Expense of $1,200. B. a credit to Wages Payable of $350. C. a credit to Wage Expense of $850. D. a credit to Wages Payable of $1,200. E. None of these.

12. (Multiple Choice)

Richards Hospital was incorporated on August 1. The initial capital was raised by issuing $2,000,000 of stock. The appropriate journal entry for this transaction is:

A. Debit Cash/Credit Revenue. B. Debit Capital Stock/Credit Revenue. C. Debit Capital Stock/Credit Cash. D. Debit Cash/Credit Capital Stock. E. None of these.