Prepare entries for (a), (b), and (c) listed below using t
Question and Solution
Prepare entries for (a), (b), and (c) listed below using two methods. First, prepare the entries without making a reversing entry. Second, prepare the entries with the use of a reversing entry. Use T-accounts to assist your analysis. (a) Wages paid during 20-1 are $20,800. (b) Wages earned but not paid (accrued) as of December 31, 20-1, are $300. (c) On January 3, 20-2, payroll of $800 is paid, which includes the $300 of wages earned but not paid in December.