Question

Alpha Company shows a balance in its Salaries and Wages Payable account of $45,000 at the end of the month. The next payroll amounting to $60,000 is to be paid in the following month. Which of the following represents the journal entry to record the payment of the salaries and wages?

A. Debit Salaries and Wages Payable $60,000; Credit Cash $60,000
B. Debit Salaries and Wages Expense $60,000; Credit Cash $60,000
C. Debit Cash $60,000; Credit Salaries and Wages Expense $60,000
D. Debit Cash $45,000; Credit Salaries and Wages Payable $45,000

Answer 1

The correct journal entry to record the payment of salaries and wages would be: Option D: Debit Cash $45,000; Credit Salaries and Wages Payable $45,000.

Step-by-step explanation:

The correct journal entry to record the payment of salaries and wages would be: Option D: Debit Cash $45,000; Credit Salaries and Wages Payable $45,000 This entry reflects the payment of the outstanding balance in the Salaries and Wages Payable account, reducing the liability. The Cash account is debited to reflect the decrease in cash due to the payment. The Salaries and Wages Payable account is credited to reduce the balance to zero.