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

Question

Quizplus · Accepted Answer

The company pays all employees a salary on the first and the fifteenth of the month, so the normal payroll is $10,000 per pay period. On the last day of the month, the company would have shown $10,000 as payroll payable on the balance sheet, $20,000 as a cash flow from operating expenses on the statement of cash flows, and $20,000 as an operating expense under salaries on the income statement.

Janet Has a Company That Pays All Employees a Salary