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)$10,000 as a cash flow from operating expenses on the statement of cash flows.
B)$10,000 as cost of good sold on the income statement.
C)$10,000 as an operating expense under salaries on the income statement.
D)$10,000 as payroll payable on the balance sheet.

Question

Quizplus · Accepted Answer

Since Janet pays her employees on the 1st and 15th of the month, any salaries paid on the last day of the month would be included in the payroll payable balance on the balance sheet. Therefore, the correct choice is D.

Janet Has a Company That Pays All Employees a Salary