Adjusting, Closing and Reversing Entries 1. Prepare the entries without making a reversing entry. For a compound transaction, if an amount box does not require an entry, leave it blank. If no entry is required, select "No Entry Required" and leave the amount boxes blank or enter "0". 2. Prepare the entries with the use of a reversing entry. If an amount box does not require an entry, leave it blank. If no entry is required, select "No Entry Required" and leave the amount boxes blank or enter "0". 3. Use T-accounts to assist your analysis for without making a reversing entry. Prepare entries for (a), (b), and (c) listed below using two methods. First, prepare the entries without making a reversing entry. Second, prepare the entries with the use of a reversing entry. Use T-accounts to assist your analysis. Wages paid during 20-1 are $20,690. Wages earned but not paid (accrued) as of December 31, 20-1, are $310. On January 3, 20-2, payroll of $720 is paid, which includes the $310 of wages earned but not paid in December.

1. Prepare the entries without making a reversing entry. For a compound transaction, if an amount box does not require an entry, leave it blank. If no entry is required, select "No Entry Required" and leave the amount boxes blank or enter "0".

Adjusting Entry: 12/31/-1

Closing Entry: 12/31/-1

Reversing Entry: 1/1/-2

Payment of Payroll: 1/3/-2

2. Prepare the entries with the use of a reversing entry. If an amount box does not require an entry, leave it blank. If no entry is required, select "No Entry Required" and leave the amount boxes blank or enter "0".

Adjusting Entry: 12/31/-1

Closing Entry: 12/31/-1

Reversing Entry: 1/1/-2

Payment of Payroll: 1/3/-2

3. Use T-accounts to assist your analysis for without making a reversing entry.

Wages Expense

Wages Payable

Cash

4. Use T-accounts to assist your analysis for the use of a reversing entry.

Wages Expense
Bal.

Wages Payable

Cash