Question

Trudy's Café paid employees $1,700 in September for work performed that month. What journal entry will Trudy's prepare to record that transaction?

Answer 1

Trudy's Café will prepare a journal entry by debiting Wages Expense for $1,700 and crediting Cash for $1,700.

Step-by-step explanation:

To record the transaction of Trudy's Café paying employees $1,700 in September for work performed that month, the journal entry that Trudy's will prepare is as follows:

1. Debit Wages Expense for $1,700
2. Credit Cash for $1,700

This entry debits the Wages Expense account, which increases the expense, and credits the Cash account, which decreases the asset.