The employees of Leichester Services, Inc. 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

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Salaries Expense should appear on the income statement as it reflects the cost of labor incurred by the company during the period of December 2016. Prepaid Expense and Unearned Revenue are balance sheet accounts that represent future expenses or revenues that have been paid or received in advance. Salaries Payable is a liability account that represents the amount owed to employees for their work, but it is not relevant to the income statement for the year ended December 31, 2016.

The Employees of Leichester Services, Inc