On December 31, 2016, Zeal Company had accrued salaries of $12,000.
Required
a. Record in general journal format the adjustment required as of December 31, 2016.
b. Record the above adjustment in a horizontal statements model like the following one:

c. Determine the amount of net income Zeal would report on the 2016 income statement, assuming that Zeal received $29,000 of cash revenue. What is the amount of net cash flow from operating activities for 2016?
d. What amount of salaries payable would Zeal report on the December 31, 2016, balance sheet?

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Assets Liab. + Equity Rev. Exp. Net Inc Cash Flow Sal. Pay. Ret. Earn.