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Question - The Lewiston Company fails to accrue $100 for one day's wage expense at 12/31/22. These wages plus wages of two days in the new year are paid on 1/2/23. Total cash paid is $300. The following journal entry is made on 1/2/23:
Wage Expense$300 Cash $300
Required - Indicate the errors for 12/31/22 Retained Earnings and 2023 Wage Expense, respectively.
a. No Error and Overstated
b. Overstated and Overstated
c. Understated and No Error
d. No Error and Understated
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