The following adjusting journal entry was found on page 4 of the journal. Select the best explanation for the entry.
Wages Expense
2,555
Wages Payable
2,555
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Record the payment of wages
Record wages to be paid this month
Record wages paid in advance
Record wages expense incurred and to be paid next month
"Record wages expense incurred and to be paid next month"
Payable implies an expense you owe.
In order to following adjusting journal entry was found on page 4 of the journal. Select the best explanation for the entry, is it A adjust supplies inventory to actual, B adjust supplies expense, C record sale of supplies.
The best explanation for the adjusting journal entry is to "Record wages expense incurred and to be paid next month."
The best explanation for the adjusting journal entry is: "Record wages expense incurred and to be paid next month".
To arrive at this answer, we need to understand the purpose of an adjusting entry. Adjusting entries are made to ensure that financial statements accurately reflect the financial position and performance of a company.
In this specific entry, we can see that the Wages Expense account is being debited for $2,555. This records the expense that the company has incurred for wages during the current accounting period.
The corresponding credit is made to the Wages Payable account for the same amount of $2,555. This entry signifies that the company owes $2,555 in wages to its employees, which will be paid in the following month.
Hence, the entry is made to record wages expense that has been incurred during the current period and will be paid in the next month.