3. Accrual Accounting Concepts
Adjusting Entries: Accrued Expenses
Multiple Choice
Multiple ChoiceWait-2-Pay, Inc. has an employee that works every day of the year for $100 per day. W2P pays its employee once per month on the 25th of the month. The company is preparing its December 31 financial statements. The entry to adjust for accrued salary expense would include:
A
Debit Salary Expense $600; Credit Prepaid Salaries $600
B
Credit Salary Expense $600; Debit Prepaid Salaries $600
C
Debit Salary Expense $600; Credit Accrued Salaries Expense $600
D
Credit Salary Expense $600; Debit Accrued Salaries Expense $600
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