For the payroll period ended on June 25, 2019, gross pay was $16,850, net pay was $10,800, FICA tax withholdings were $2,300, income tax withholdings were $3,000, and medical insurance contributions were $750.

Required:

Use the horizontal model to show the effects of the payroll accrual on June 25, 2019. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.)

Balance Sheet

Income Statement

Assets

=

Liabilities

+

Stockholders Equity

Net income

=

Revenues

-

Expenses

=

+

=

-

=