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| Paid Wages Journal Entry |
When a company pays wages or salaries to its employees, then the company maintains the transaction in its accounting records.
Journal Entry for Wages Payment
Wages Expense Account Debit
Cash or Bank Account Credit
- The "Wages Expense" account is debited because of the cost of labor is an expense.
- The "Cash" or "Bank Account" is credited because the decrease the company's cash or bank balance.
This journal entry reflects the payment of wages, reducing the company's cash or bank balance and considering with the associated expenses.
