Reference no: EM132915036

Problem 1: If payday occurs on each Wednesday for the weekly pay period ending the previous Friday, and an entry is made each Friday to accrue the payroll for that week, the journal entry to record on Friday would involve a debit to:

Option 1: Wages Payable.

Option 2: None of these

Option 3: Cash.

Option 4: Wage Expense.

Option 5: Cash Expense.

Problem 2: Conner Corporation's adjusted trial balance included the following items: Accounts payable ($65,000), Accounts receivable ($45,000), Capital stock ($100,000), Cash ($50,000), Dividends ($10,000), Goodwill ($47,000), Interest expense ($4,000), Interest payable ($2,000), Inventory ($32,000), Notes payable ($80,000), Prepaid expenses ($5,000), Property, plant & equipment ($123,000), Retained earnings ($46,000), Rent expense ($18,000), Revenues ($101,000), and Salary expense ($60,000). What would be the total credits on the trial balance?

Option 1: $394,000

Option 2: $384,000

Option 3: $347,000

Option 4: None of these