Reference no: EM132838510
Comfy Home employs part-time staff in its stores to help them with customers. Staff are paid an hourly wage and do not receive benefits. Between March 1st and 20th, the staff worked 400 hours at $15 an hour for a total of $6,000 in wages. The staff were paid for this amount on March 25th. No amount has been previously recorded for these wages.
Problem 1: What is the journal entry that should be recorded on March 25th?
Group of answer choices
Option 1: Debit to Wages Expense for $6,000 and Credit to Cash for $6,000
Option 2: Debit to Prepaid Wages for $6,000 and Credit to Cash for $6,000
Option 3: Debit to Wages Expense for $6,000 and Credit to Accounts Payable for $6,000
Option 4: Debit to Wages Expense for $6,000 and Credit to Wages Payable for $6,000