7. For the past 3 years, Xavier, Inc., has failed to accrue unpaid wages earned by workers during the last week of the year. (The wages expense was recorded in the following year, when paid.) The amounts omitted, which are considered material, were as follows: December 31, 2018 December 31, 2019 December 31, 2020 $56,000 51,000 64,000 The entry on 12/31/20 to correct for these omissions would include a a. credit to wage expense for $64,000. credit to retained earnings for $64,000.A c. credit to retained earnings for $56,000. d. debit to wage expense for $13,000.

7. For the past 3 years, Xavier, Inc., has failed to accrue unpaid wages earned by workers during the last week of the year. (The wages expense was recorded in the following year, when paid.) The amounts omitted, which are considered material, were as follows: December 31, 2018 December 31, 2019 December 31, 2020 $56,000 51,000 64,000 The entry on 12/31/20 to correct for these omissions would include a a. credit to wage expense for $64,000. credit to retained earnings for $64,000.A c. credit to retained earnings for $56,000. d. debit to wage expense for $13,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Skip to question [The following information applies to the questions displayed below.]At March 31, 2019, the end of the first year of operations at Lukancic Inc., the firm’s accountant neglected to accrue payroll taxes of $6,370 that were applicable to payrolls for the year then ended. Exercise 7-7 (Algo) Part a - Horizontal Model Required:a-1. Use the horizontal model to show the effect of the accrual that should have been made as of March 31, 2019. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.)
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