Question

On December 31, the trial balance shows wages expense of $390. An additional $130 of wages was earned by the employees, but has not yet been paid. Analyze this adjustment for wages using T accounts, and then formally enter this adjustment in the general journal. (Trial balance is abbreviated as TB.)

(Income Statement)
Wages Expense
(Balance Sheet)
Wages Payable
Page:
CREDIT DATE DOC. POST NO. REF ACCOUNT TITLE DEBIT 1 20- Dec. 31 1 2 2

Answer 1

(Income Statement)

Wages Expenses

Trial balance $390 |

Adjustment $130 |

Balance $520 |

(Balance Sheet)

Wages Payable

| Adjustment $130

Date Account Titles Debit Credit

Dec 31 Wages expenses $130

2020 Wages payable $130