I need Accounting Homework Help [ + rep ]

[Kawaii]

So.. I'm basically doing a balance sheet. And recording transactions.
I need to assign the amount of money that was either gained or lost to the proper account.

the transaction states this:
"Wages and salaries incurred in March amounted to $11,500, of which $4,600 was paid."

The account options include:

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There are 3 accounts that I need to use. I just can't seem to figure it out.

[DrSloth]

unfortunatelly my english vocabulary doesnt extend to these kind of exercise, best of luck, hope someone show up to help

[Kawaii]

thank you @(you need an account to see links) ^~^ I hope so too xD

[Seiryuu]

Any chance we can see your previous tries?

[Ghosts]

Credit Cash - $4600.00
Credit Wages Payable - $6900.00

And then I think the last one should be to debit Wages Expense $11500.00, but there aren't any expense accounts listed. Try debiting Retained Earnings $11500.00? That's the only thing I can think of.

[Kawaii]

Any chance we can see your previous tries?

sure. the window when I open them is a little scrunched and I can't expand it so I'll make a list for you with what I've tried:

Try one:
Cash: -4600
Wages Payable: 11500
Retained Earnings: -6900

Try two:
Cash: -4600
Wages Payable: -11500
Retained Earnings: -6900

Try three:
Cash: -4600
Wages Payable: 6900
Retained Earnings: 6900
(this one was a derp on my part)

Try four:
Cash: -4600
Wages Payable: 6900
Retained Earnings: 2300
(another derp because I meant to do a negative sign in the last one)

Try five:
Cash: -4600
Wages Payable: 6900
Retained Earnings: -2300 idea behind this was that the 11,500 minus the cash paid would leave the wages payable. and then the retained earnings is the difference between that and the cash. they are supposed to balance each other out. So if you have for example money coming out of the assets there has to be the same amount gained somewhere else in assets, or something coming out from equities so it is balanced out.

I'm really terrible at explaining things x_x so I apologize if this makes no sense. I'm not an accounting major. This is just a stupid gen class the university is making me take.

---------- Post added at 10:45 PM ---------- Previous post was at 10:41 PM ----------

Credit Cash - $4600.00
Credit Wages Payable - $6900.00

And then I think the last one should be to debit Wages Expense $11500.00, but there aren't any expense accounts listed. Try debiting Retained Earnings $11500.00? That's the only thing I can think of.

cash would be minus obviously, so would everything else be minus as well? the signs do matter x_x

[Ghosts]

sure. the window when I open them is a little scrunched and I can't expand it so I'll make a list for you with what I've tried:

Try one:
Cash: -4600
Wages Payable: 11500
Retained Earnings: -6900

Try two:
Cash: -4600
Wages Payable: -11500
Retained Earnings: -6900

Try three:
Cash: -4600
Wages Payable: 6900
Retained Earnings: 6900
(this one was a derp on my part)

Try four:
Cash: -4600
Wages Payable: 6900
Retained Earnings: 2300
(another derp because I meant to do a negative sign in the last one)

Try five:
Cash: -4600
Wages Payable: 6900
Retained Earnings: -2300 idea behind this was that the 11,500 minus the cash paid would leave the wages payable. and then the retained earnings is the difference between that and the cash. they are supposed to balance each other out. So if you have for example money coming out of the assets there has to be the same amount gained somewhere else in assets, or something coming out from equities so it is balanced out.

I'm really terrible at explaining things x_x so I apologize if this makes no sense. I'm not an accounting major. This is just a stupid gen class the university is making me take.

You need equal debits and credits for any transaction. That means that the amount of money that you are crediting (decreasing an asset, or increasing a liability) has to equal the amount that you are debiting (increasing an asset, or decreasing a liability).

Your first try is the only that you did that on, but I think you just have the accounts mixed up.

[Seiryuu]

Cash: -4600
Wages Payable: 6900
Retained Earnings: -11500

You physically lose 4600 in cash, wages that are payable is still 6900 and either way you lose the 12k in earnings.
Here's part of an answer key:

(you need an account to see links)

[Kawaii]

Cash: -4600
Wages Payable: 6900
Retained Earnings: -11500

You physically lose 4600 in cash, wages that are payable is still 6900 and either way you lose the 12k in earnings.
Here's part of an answer key:

(you need an account to see links)

Yep this was correct. I guess I was confused about the role of wages payable and the RE in this one, which should be positive and negative and whatever. Thank you both for your help! unfortunately I have one rep a day xD

[phantasia]

Ok here is what I think
I think you should not use retained earnings
Retained Earnings: Profits of the business that have not been paid to the owners and have been "retained" in the business. Retained earnings are stored in an "equity" account that is presented on the balance sheet and on the statement of changes in owners' equity.
Its not for wages

So I think
Wages Payable 11500
Cash 4600
Then leave the 3de blank

For example, a company pays its hourly employees once a month, on the last business day of the month. In order to have sufficient time to process payroll, the payroll staff only pays wages based on hours recorded through the 26th day of the month, leaving as many as five days at month-end that will not be paid until the following monthly payroll. In March, this unpaid amount is $25,000. The company controller records this amount as a debit to wages expense and a credit to the wages payable liability account. The entry is set up as a reversing entry, so the accounting software automatically reverses it at the beginning of the following month. The net effect of the entry is to recognize the unpaid wages as an expense in the same period in which employees earned the wages.

So that would mean it is corrected by the software automatically?

Accounting is weird