Question
Look Builders pays its workers every two weeks. As of December 31 of Year 1, workers have earned wages of $9,000 for which they have
Look Builders pays its workers every two weeks. As of December 31 of Year 1, workers have earned wages of $9,000 for which they have not yet been paid; they will not be paid these wages until January of next year. The correct adjusting entry was made on December 31. On January 5 of Year 2, Look Builders paid total wages to the employees of $13,000. Of the $13,000 paid, $9,000 related to work performed last year.
Which one of the following is included in the journal entry necessary on January 5 of Year 2 to record the payment of $13,000 in cash?
A DEBIT Wage Expense $4,000.
A DEBIT Wage Expense $13,000.
A DEBIT Wages Payable $4,000.
A DEBIT Wage Expense $9,000.
A CREDIT Wages Payable $9,000.
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