on pays its employees twice a month, on the 7h and the 21t. On June 21, on paid employee salaries of $5,000. This transaction would Silver Mt. Zi A) increase owner's equity by $5,000. B) decrease the balance in Salaries and Wages Expense by $5,000. C) decrease net income for the month by $5,000. D) be recorded by a.$$,000 debit to Salaries and Wages Payable and a $4,000 credit to Salaries and Wages Expense. 26. Unearned revenue is classified as A) B) C) D) an asset account. a revenue account. a contra-revenue account. a liability account. 27. During 2012, its first year of operations, Neko's Bakery had revenues of $60,000 and expenses of $33,000. The business had owner drawings of $20,000. What is the amount of owner's equity at December 31, 2012? A) $0 B) $7,000 credit C) $27,000 credit D) $18,000 debit 28. If a company fails to make an adjusting entry to record supplies expense, then A) owner's equity will be understated B) expense will be understated. C) assets will be understated. D) net income will-be understated. 29. Accumulated Depreciation is A) an expense account. B) an owner's equity account. C) arliability account. D) a contra asset account. 30. An expense is recorded under the cash basis only when A) services are performed. B) it is earmed. C) cash is paid. D) it is inurred