Two Company pays its workers every Friday for a fiveday work

Two Company pays its workers every Friday for a five-day workweek. December 31, 2018 fell on a Wednesday. The adjusting entry on December 31, 2018 would include

Solution

Option b) is correct - credit to the wages payable

Explanation. Here wages are paid to company workers on every Friday on five-daywork week

Here Dec 31 fells on Wednesday so treat this like wages are out standing so

Credit the wages out standing