. XYZ Company reconciled the accounting books at the end of the month. At the end of the month XYZ Company had unpaid employee wages for the month of$1,000. How would this transaction be posted?
To post the transaction for unpaid employee wages of $1,000, you would follow these steps:
1. Determine the accounts involved: In this case, the relevant accounts would be an expense account (such as "Wages Expense") and a liability account (such as "Accrued Wages Payable").
2. Debit the expense account: Since unpaid employee wages are an expense, you will increase the expense account by debiting it. In this example, you would debit the "Wages Expense" account for $1,000.
3. Credit the liability account: Accrued wages payable is a liability because it represents an obligation to pay employees. To increase the liability account, you would credit the "Accrued Wages Payable" account also for $1,000.
The journal entry to post this transaction would look as follows:
Wages Expense $1,000 (Debit)
Accrued Wages Payable $1,000 (Credit)
This entry ensures that the expense is recognized in the current period, and a corresponding liability is recorded for the unpaid wages.