Assume reversing entries are made by the entity. If wages of $2600 were accrued at the end of the year and the first payment of wages the following year was $33 100 how would this payment be recorded?

. DR Salaries payable $2600; DR Salaries expense $30 500; CR Cash $33 100

. DR Salaries expense $35 700; CR Salaries payable $2600; CR Cash $33 100

. DR Salaries payable $2600; DR Salaries expense $33 100; CR Cash $35 700

. DR Salaries expense $33 100; CR Cash $33 100

2-

The end of the financial year for Reynolds Ltd is 31 December. At that date, salaries and wages expenses of $580 000 is closed to the profit and loss summary account. This balance includes $550 000 for salaries and wages paid in cash during the year and accrued wages at the end of the year of $30 000. Reynolds Ltd records a reversing entry for the accrued wages on 1 January. The first payment to employees for salaries and wages in the new financial year is $35 000. This payment would be recorded as:

. DR Salaries and wages expense $35 000; CR Bank $35 000

. DR Salaries and wages expense $5 000; CR Bank $5 000

. DR Accrued Salaries and wages $30 000; CR Bank $30 000

. DR Salaries and wages expense $35 000; DR Accrued salaries and wages $30 000; CR Bank $65 000