Question
Smyth Company pays its employees every Friday for a 5-day workweek (Monday through Friday). The employees earn $5,000 per day of work. The most recent
Smyth Company pays its employees every Friday for a 5-day workweek (Monday through Friday). The employees earn $5,000 per day of work. The most recent workweek began on Monday, October 6, 2005. The accounting period ends on Thursday October 9, 2005, and the company will issue paychecks totalling $25,000 on Friday, October 10, 2005. The entry into the journal of Billie Smyth Company on Thursday, October 9, 2005 would include a:
- A.
Debit to wages expense for $25,000.
- B.
Debit to wages expense for $25,000.
- C.
Credit to cash for $25,000.
- D.
Credit to wages payable for $20,000.
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