In April, Homer Simpson hired a new employee at a rate of $1,000 per month to st
ID: 2391588 • Letter: I
Question
In April, Homer Simpson hired a new employee at a rate of $1,000 per month to start work at the beginning of May. In April, Homer Simpson should record:
nothing, because an exchange of promises is not a transaction.
a $1,000 increase to Wage expense and a $1,000 decrease to Cash.
a $1,000 increase in Wages Payable and a $1,000 increase in Wages Expense.
a $1,000 increase to Prepaid wages and a $1,000 decrease to Cash.
nothing, because an exchange of promises is not a transaction.
a $1,000 increase to Wage expense and a $1,000 decrease to Cash.
a $1,000 increase in Wages Payable and a $1,000 increase in Wages Expense.
a $1,000 increase to Prepaid wages and a $1,000 decrease to Cash.
Explanation / Answer
In April, Homer Simpson hired a new employee at a rate of $1,000 per month to start work at the beginning of May. In April, Homer Simpson should record:
So answer is a) Nothing, because an exchange of promises is not a transaction