Bird Company incurred $10,000 in salaries and wages for employees for the year;$9,000 of these salaries and wages had been paid by the end of the year.Which of the following statements about this situation is correct?

Question

Quizplus · Accepted Answer

The unpaid salaries and wages of $1,000 (or salaries and wages incurred of $10,000 − salaries and wages paid of $9,000)are reported as Salaries and Wages Payable,a liability on the balance sheet.Salaries and Wages Expense of $10,000,the amount incurred,is reported on the income statement.

Bird Company Incurred $10,000 in Salaries and Wages for Employees