Chapter 4, Problem 4.15.5E

To determine

Concept Introduction:

Salaries and wages are one of the major expenses of an organization. The payment of salaries and wages are recorded on regular basis. There is a need to make an adjusting entry at the end o the accounting period of the accrued wages. The accrued wages are recorded with the title wages payable and the wages payable is paid in the next accounting period.

To indicate: The effect on net income if the adjustment on Sept. 30 is not done for wages payable.