S3-9. (Learning Objective 2: Applying the revenue recognition principles and matching concept) During 20X6, Litblue Airlines paid salary expenses of €39.7 million. At December 31, 20X6, Litblue accrued salary expenses of €3.1 million. Litblue then paid €2.3 million to its employees on January 3, 20X7, the company’s next payday after the end of the 20X6 year. For this sequence of transactions, show what Litblue would report on its 20X6 Income Statement and on its Balance Sheet at the end of 20X6.