Portions of the wages expense account of a business follow:a. Indicate the nature of the entry (payment, adjusting, closing, reversing) from which each numbered posting

Portions of the wages expense account of a business follow:


Account Wages Expense Account No. 53 Date Item Post.  Ref. Dr. Cr. 2018 Dec. 26 (1) 125 15,400 800,000 31 (2) 126 9,250 809,250 31 (3) 127 809,250 — — 2019 Jan. 1 (4) 128 9,250 9,250 2 (5) 129 14,800 5,550










a. Indicate the nature of the entry (payment, adjusting, closing, reversing) from which each numbered posting was made.

b. Journalize the complete entry from which each numbered posting was made. Close revenues and expenses to D. Bower, Capital.


Answers:

a. (1) Payment (last payday in year)
(2) Adjusting (accrual of wages at end of year)
(3) Closing
(4) Reversing
(5) Payment (first payday in following year)
b. (1) Wages Expense...................................................... 15,400
Cash.................................................................. 15,400
Paid wages.
(2) Wages Expense...................................................... 9,250
Wages Payable................................................... 9,250
Accrued wages.
(3) D. Bower, Capital................................................... 809,250
Wages Expense................................................... 809,250
Closing entry.
(4) Wages Payable...................................................... 9,250
Wages Expense................................................... 9,250
Reversing entry.
(5) Wages Expense...................................................... 14,800
Cash.................................................................. 14,800
Paid wages.