The employees of Leicester Services Company worked the last two weeks of December,2016.They received their paychecks on January 2,2017.Which of the following accounts should appear on the income statement for the year ended December 31,2016?

Question

Quizplus · Accepted Answer

Salaries Expense should appear on the income statement for the year ended December 31, 2016 because it represents the total amount paid to the employees for the work done during that period. Prepaid Expense is an asset account which represents advance payments made for goods or services that will be received in the future. Salaries Payable is a liability account which represents the amount owed to employees for work completed but not yet paid. Unearned Revenue is a liability account which represents advance payments received for goods or services that will be provided in the future. Hence, the correct answer is A).

The Employees of Leicester Services Company Worked the Last Two