Chapter 5 (Q8-9) 290T

Logan Company pays its employees at the end of the day Friday for work done during that 5 -day work week. In the current year, December 51 occurred on a Wednesday, so 3 days of wages were earned but not paid by the end of day on December 31 . Which debit or credit is correctly included in the adjusting journal entry necessary on December 51 to record the wages that Logan Company has not yet paid? CREDIT to Wages Expense CREDIT to Wages Payable CREDIT to Retained Earnings DEBIT to Wages Payable On December 31, Morgan Company received a statement from its book distributor notifying Morgan that the company had earned 550,000 for its December royalties. This amount will be paid to Morgan next year in February. Because December 31 is the end of Morgan's fiscal year, the company makes adjusting entries at that time. Which debit or credit is correctly included in the adjusting journal entry necessary on December 31 to record the royalty revenue that Morgan has earned but not yet received? CREDIT to Accounts Payable DEBIT to Royalty Revenue DEBIT to Accounts Payable CREDIT to Royalty Revenue CAe DIT to Accounts Peceivable