Exercise 11-1A (Algo) Employee compensation-Asset or expense LO 11-1 Baird Company started year 2 with $30,000 in its cash and common stock accounts. During year 2 Baird paid $22,500 cash for employee compensation. Assume this is the only transaction that occurred in year 2. Required a. Determine the total amount of assets at the end of year 2, assuming Baird is a manufacturing company and the employees were paid to make products. b. Determine the amount of expense recognized on the year 2 Income statement, assuming Baird is a manufacturing company and the employees were paid to make products. c. Determine the total amount of assets at the end of year 2, assuming Baird is a service company d. Determine the amount of expense recognized on the year 2 Income statement, assuming Baird is a service company Answer is complete but not entirely correct. Manufacturing a. Total assets $ 30,000 b. Total expenses $ 22,500 Service: c. Total assets $ 30,000 d. Total expenses $ 22,500