The University Satellite Office Operates Five Days Per Week with a Daily

Multiple Choice

The university satellite office 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.