Final answer:
The correct adjusting entry for recording salaries and wages owed at the end of an accounting period is a debit to "Salaries and Wages Expense" and a credit to "Salaries and Wages Payable", which is answer A) Expense; Liability.
Step-by-step explanation:
The adjusting entry to record salaries and wages owed to employees at the end of an accounting period typically includes a debit to "Salaries and Wages Expense" to recognize the expense incurred during the period, and a credit to "Salaries and Wages Payable" (or a similarly titled account) to acknowledge the liability that the company has because it owes wages to its employees. This reflects that an expense has been incurred even though cash has not yet been paid out, in accordance with the accrual basis of accounting. The correct answer is therefore A) Expense; Liability. The T-account model helps to visualize this transaction, with expenses increasing on the debit side and liabilities increasing on the credit side, ensuring that the equation assets = liabilities + equity remains balanced.