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Leia Consulting normally pays its employees two times per month. Due to holidays and weekends, however, Leia did not pay its employees for the
Leia Consulting normally pays its employees two times per month. Due to holidays and weekends, however, Leia did not pay its employees for the final two weeks of 20X1. Instead, Leia paid its employees on January 3rd, 20X2. Assuming that Leia made the appropriate adjusting entry at the end of 20X1, how did the payment on January 3rd, 20X2 affect: (i) total liabilities and (ii) net income? Decrease i; Decrease ii. No effect to i; Decrease ii. O Increase i; Decrease ii. Decrease i; No effect to ii. None of the above are correct.
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