James Myers Ltd Paid Salaries and Wages of $450 000

Multiple Choice

James Myers Ltd paid salaries and wages of $450 000 during the year ended 30 June 2018. The company owes $12 000 for work carried out during the last week of June but which is not due to be paid until 3 July. Assume there were no salaries and wages outstanding at the beginning of the financial year. After the adjusting entry for the year ended 30 June 2018:

A) Salaries and wages in the income statement are $462 000 and accrued Salaries and wages in the balance sheet are $12 000.
B) Salaries and wages in the income statement are $450 000 and accrued Salaries and wages in the balance sheet are $12 000.
C) Salaries and wages in the income statement are $438 000 and accrued Salaries and wages in the balance sheet are $12 000.
D) Salaries and wages in the income statement are $462 000 and accrued Salaries and wages in the balance sheet are $0.