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

Question

Quizplus · Accepted Answer

On the last day of the month, the payroll for the next pay period is accrued as a liability, so it would be shown as payroll payable on the balance sheet.

Janet Has a Company That Pays All Employees a Salary