The term, accrued wages, means that
a. expenses have not been incurred and not paid.
b. expenses have been incurred but not yet been recorded.
c. expenses have been incurred and paid.
d. none of the answers listed.
Question 2
Sweet Stuff Co purchases equipment with a cost of 36,400 and a trade-in value of 4,000 . Sweet Stuff Co estimates that the equipment will have a useful life of 9 years. Assuming Sweet Stuff Co records depreciation for one month using the straight-line method, the adjustment would be recorded in the work sheet as a:
a. credit to depreciation expense, 3,600.
b. debit to depreciation expense, 300.
c. credit to equipment, 300.
d. credit to accumulated depreciation, 3,600.
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