Assume that Plainview Services had $4,500 of salaries accrue for the time between the last payday and the end of the year. The adjusting entry for the accrued salaries would include a
a. debit to Salaries Payable.
b. credit to Salary Expense.
c. debit to Salary Expense.
d. credit to Cash.
c
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From an investors' or shareholders' perspective, the measure of competitive advantage that matters most is the
A. return on risk capital. B. inventory turnover. C. economic value created. D. consumer surplus.
The potential advantages of traditional mail surveys are quick response and lower cost than online surveys, but this advantage has yet to be achieved.
Answer the following statement true (T) or false (F)
Jethro Company, an accrual basis taxpayer, had a $10,000 overdue account payable to a major supplier. The supplier agreed to settle the account for $9,000 cash from Jethro. Which of the following statements is true?
A. Jethro can deduct the $9,000 payment. B. Jethro can deduct a $1,000 bad debt expense. C. Jethro recognizes $1,000 income because of the settlement. D. Jethro recognizes no income because of the settlement.
A company is considering purchasing a machine for $21,000. The machine will generate an after-tax net income of $2,000 per year. Annual depreciation expense would be $1,500. What is the payback period for the new machine?
A) 4 years. B) 6 years. C) 10.5 years. D) 14 years. E) 42 years.