The Employees of Dew Drop Inn Get Paid Every Friday

question 10

Multiple Choice

The employees of Dew Drop Inn get paid every Friday for a 5-day workweek (Monday through Friday) .The total payroll is $5,000 per day of work.If the accounting period ends on Thursday of a given week,and the proper adjustment is made on Thursday,what will be the effect of the adjustment on the company's financial statements?

• A)The balance sheet will report additional salaries expense of $20,000.
• B)The balance sheet will report additional salaries expense of $25,000.
• C)The income statement will report additional salaries expense of $20,000.
• D)The income statement will report additional salaries expense of $25,000.

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A type of product that consumers purchase less frequently, with unique characteristics or brand identification, for which a significant group of buyers is willing to make a special purchasing effort.

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