At the end of the fiscal year, Smith & Co. made the following journal entry:Wages expense$1,000Wages payable$1,000(To accrue wages expense owed employees on 12/31/20x1)On January 1, 20x2, Smith & Co.’s accountant made a reversing entry. On the next payday, Smith & Co. paid $6,000 of wages—the $1,000 of wages incurred in 20x1 and $5,000 of wages from 20x2. Which of the following is part of the journal entry to record the $6,000 payroll?

Exam content for CLEP Financial Accounting exam, which covers the basics of introductory financial accounting course: General Topics (20%–30%) Generally accepted accounting principles Rules of double-entry accounting/transaction analysis/accounting equation The accounting cycle Business ethics Purpose of, presentation of, and relationships between financial statements Forms of business The Income Statement (20%–30%) Presentation format issues Recognition of revenue and expenses Cost of goods sold Irregular items (e.g., discontinued operations, extraordinary items,... Show more

Exam content for CLEP Financial Accounting exam, which covers the basics of introductory financial accounting course:

General Topics (20%–30%)
Generally accepted accounting principles
Rules of double-entry accounting/transaction analysis/accounting equation
The accounting cycle
Business ethics
Purpose of, presentation of, and relationships between financial statements
Forms of business

The Income Statement (20%–30%)
Presentation format issues
Recognition of revenue and expenses
Cost of goods sold
Irregular items (e.g., discontinued operations, extraordinary items, etc.)
Profitability analysis

The Balance Sheet (30%–40%)
Cash and internal controls
Valuation of accounts and notes receivable (including bad debts)
Valuation of inventories
Acquisition and disposal of long-term assets
Depreciation/amortization/depletion
Intangible assets (e.g., patents, goodwill, etc.)
Accounts and notes payable
Long-term liabilities (e.g., bonds payable)
Owner's equity
Preferred and common stock
Retained earnings
Liquidity, solvency, and activity analysis

Statement of Cash Flows (5%–10%)
Indirect method
Cash flow analysis
Operating, financing, and investing activities

Miscellaneous (Less than 5%)
Investments
Contingent liabilities

 

Related test: CLEP Financial Accounting Exam Practice Test 1

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