Employees Have Worked for the Full Year and Have Received

Multiple Choice

Employees have worked for the full year and have received total wages of $305,000 in cash. However, they must wait until the next payday to be paid for the last three days of the year they have worked. The amount owing is $6,500. Wages expense in the statement of financial performance and accrued wages in the statement of financial position are respectively:

A) $311,500 and $6,500.
B) $306,000 and $5,500.
C) $306,000 and $0.
D) $311,500 and $0.