Pro Incorporated Operates Five Days Per Week with a Daily

Multiple Choice

Pro Incorporated operates five days per week with a daily payroll of $5,000. Employees are paid every Saturday for the workweek just completed (Monday through Friday) . The last day of the month is Wednesday, October 31. What is the effect of the correct adjustment at October 31?

A) Increases stockholders' equity and wages payable by $15,000
B) Increases wages payable and decreases cash by $10,000
C) Decreases stockholders' equity and increases wages payable by 15,000
D) Increases wages payable and increases wages expense by $25,000