Assume That No Reversing Entries Are Made by This Firm

Multiple Choice

Assume that no reversing entries are made by this firm. If wages of $12 400 were accrued by it at the end of the year and the first payment of wages in the subsequent year was $110 500 how would this payment be recorded?

A) Debit salaries payable $12 400; debit salaries expense $98 100; credit cash $110 500
B) Credit salaries payable $12 400; debit salaries expense $122 900; credit cash $110 500
C) Debit salaries payable $12 400; debit salaries expense $110 500; credit cash $122 900
D) Debit salaries expense $98 100; credit cash$98 100