Omega Company pays its employees twice a month, on the 7^th and the 21^st. On June 21, Omega Company paid employee salaries of $4,000. This transaction would A) increase owner's equity by $4,000. B) decrease the balance in Salaries Expense by $4,000. C) decrease net income for the month by $4,000. D) be recorded by a $4,000 debit to Salaries Payable and a $4,000 credit to Salaries Expense.

Question

Quizplus · Accepted Answer

Paying salaries is an expense that reduces net income, so the transaction decreases net income by $4,000.

Omega Company Pays Its Employees Twice a Month, on the 7th

Omega Company Pays Its Employees Twice a Month, on the 7^th