For the past 3 years, Gainsville Co. has failed to accrue unpaid wages earned by
ID: 2477821 • Letter: F
Question
For the past 3 years, Gainsville Co. has failed to accrue unpaid wages earned by workers during the last week of the year. The amounts omitted, which are considered material, were as follows:
December 31, Year 1 $56,000
December 31, Year 2 51,000
December 31, Year 3 64,000
The entry on December 31, Year 3, to correct for these ommissions would include -
Credit to wage expense for $64,000
Credit to retained earnings for $64,000
Debit to wage expense for $51,000
Debit to wage expense for $13,000
Explanation / Answer
Dec 31st Year 3
1. Wages a/c Dr $64,000
To Wages Payable a/c Cr $64,000