Question
Able Company pays its employees twice a month, on the 7th and the 21st. On June 21, Able Company paid employee salaries of $5,000. This
Able Company pays its employees twice a month, on the 7th and the 21st. On June 21, Able Company paid employee salaries of $5,000. This transaction would
a. decrease net income for the month by $5,000.
b. increase owner’s equity by $4,000.
c. decrease the balance in Salaries Expense by $4,000
d. be recorded by a $4,000 debit to Salaries Payable and a $4,000 credit to Salaries Expense.
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Intermediate Accounting
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
1st edition
978-0133251579, 133251578, 013216230X, 978-0134102313, 134102312, 978-0132162302
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