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Janet Has a Company That Pays All Employees a Salary

Question 1

Multiple Choice

Janet has a company that pays all employees a salary on the first and the fifteenth of the month.Her normal payroll is $10,000 per pay period.On the last day of the month she would have shown


A) $20,000 as an operating expense under salaries on the income statement.
B) $20,000 as a cash flow from operating expenses on the statement of cash flows.
C) $10,000 as payroll payable on the balance sheet.
D) All of the above would show on above statements.
E) Not enough information is provided to answer this question.

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