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:
a) a $1,000 increase in Wages Payable and a $1,000 increase in Wages Expense.
b) a $1,000 increase to Wage expense and a $1,000 decrease to Cash.
c) a $1,000 increase to Prepaid wages and a $1,000 decrease to Cash.
d) nothing, because an exchange of promises is not a transaction
d) nothing, because an... View the full answer
- Kindly read last sentence as "This is because neither cash was paid nor any salary accrued." If you are satisfied with my answer and explanation, kindly mark this answer as helpful:) best of luck:)
- Jun 20, 2018 at 9:09am
Sign up to view the full answer
Accrual Basis of Accounting: As per this accounting system, transactions are recorded on the basis... View the full answer