ABC company recorded wages payable of $15,000 for work performed by employees at the end of April that will be paid in May. Record the May transaction.

1. How would this impact net income? state increase or decrease and amount or NA (example: increase 10,000)

2. How would this impact the cash (bank) account? state increase or decrease and amount or NA (example: decrease 10,000)

3. What type of cash flow activity would it be on the cash flow statement? put OA, IA, FA, or NA (example: OA)

• OA= operating activity
• IA= investing activity
• FA=financing activity
• NA= not applicable