Karl Company accrued wages of $7,350 that were earned by employees unpaid at the year-end. Assuming Karl uses reversing entries, which of the following entries correctly reverses the accrued wages at the beginning of the following year?A. Debit Wages Expense $7,350; credit Cash $7,350.
B. Debit Wages Expense $7,350; credit Wages Payable $7,350.
C. Debit Wages Payable $7,350; credit Cash $7,350.
D. Debit Cash $7,350; credit Wages Expense $7,350.
E. Debit Wages Payable $7,350; credit Wages Expense $7,350.

E. Debit Wages Payable $7,350; credit Wages Expense $7,350.

Explanation:

The journal entry for recording the accrued wages is shown below:

Wages expense A/c Dr $7,350

      To Wages payable A/c $7,350

(Being the accrued wages is recorded)

Now the reversing entry is

Wages payable A/c Dr $7,350

      To Wages expense A/c $7,350

(Being the reversing entry is made)

Hence, the correct option is E.

the specific actions take by the fed. what the fed was attempting to do by taking these actions. the result of the actions taken by the fed

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