Given a statement of an employee's biweekly earnings, which of the following journal entries correctly records the payment of wages to the employee?

• A. Debit Wages Payable; Credit Wages Expense
• B. Debit Salaries Payable; Credit Cash
• C. Debit Cash; Credit Wages Expense
• D. Debit Wages Expense; Credit Cash

Answer: (D)

Verified step by step guidance

1. Understand the nature of the transaction: The payment of wages to an employee involves reducing a liability (if wages were previously accrued) or directly recording the expense and reducing cash.
2. Identify the correct accounts: Wages Expense is used to record the cost of wages incurred during the period, and Cash is reduced to reflect the payment made to the employee.
3. Determine the journal entry format: In double-entry accounting, expenses are debited to increase their balance, and assets like Cash are credited to decrease their balance.
4. Apply the correct journal entry: Debit Wages Expense to record the cost of wages incurred, and Credit Cash to reflect the payment made to the employee.
5. Review the options provided: The correct journal entry is 'Debit Wages Expense; Credit Cash,' as it accurately reflects the payment of wages and the reduction in cash.