Trotman Ltd owes $6,500 in wages at the end of the month.
How should this be recorded in Trotman Ltd's accounting information system?

Question

Trotman Ltd owes $6,500 in wages at the end of the month. How should this be recorded in Trotman Ltd's accounting information system?

Accepted Answer

DR           Wages expense             $6,500 
           CR                           Wages payable                  $6,500

Answer

DR           Wages expense             $6,500 
           CR                           Cash                  $6,500

Answer

DR           Wages payable             $6,500 
           CR                           Cash                  $6,500

Answer

DR           Wages payable             $6,500 
           CR                           Wages expense                  $6,500

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