In its 1st year of operation, Jetway Airlines paid Salaries Expense of $40 million. On December 31, it recorded an entry for additional Salaries Expense of $2 million that will be paid at the beginning of the 2nd year. What should Jetway report in the income statement and balance sheet for its first year ended December 31? Click the answer you think is right Income statement: Salaries Expense $42 million; Balance sheet: Salaries Payable $2 million Income statement: Salaries Expense $40 million; Balance sheet: Salaries Payable $0 Income statement: Salaries Expense $40 million; Balance sheet: Salarles Payable $2 million According to the revenue recognition principle, revenues should be recognized when or as the company performs acts promised to the customer. For many businesses, this condition is met at the point of delivery of goods or services. The following transactions occurred in September: Required: For each of the transactions, if revenue is to be recognized in September, indicate the amount. (Enter your answers in dollars but not in millions.) Amount $ 0 $ 0 Activity a. Gupple Enterprises Inc. issued $24 million in new common stock Chrome University received $30,740,000 cash for 106,000 five-game-season b. football tickets. None of the games have been played. c. Chrome played the first football game referred to in (b). Mell Construction Company signed a contract with a customer for the construction of a new $532,000 warehouse. At the signing, Mell received a check d. for $53,200 as a deposit to be applied against amounts earned during the first phase of construction Answer from Mell's standpoint. A popular snowboarding magazine company received a total of $2,000 today e from subscribers. The subscriptions begin in the next fiscal year. Answer from the magazine company's standpoint. Trus Tee Communications sold a $445 cell phone plan for service in September f. to a customer who charged the sale on his credit card. Answer from the standpoint of Trustee Communications $ 0 $ 0 $ 445