The Employees of Dew Drop Inn Get Paid Every Friday

question 167

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

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Definitions:

Professions

Prestigious occupations that require specialized knowledge and are regulated by a governing body.

Milpa

A traditional Mesoamerican agricultural system that involves the cultivation of maize, beans, squash, and other crops in a rotating cycle, promoting biodiversity and soil health.

Shifting cultivation

An agricultural practice in which plots of land are cultivated temporarily, then abandoned and allowed to revert to their natural vegetation while the cultivator moves on to another plot.

Swidden

A form of agriculture also known as slash-and-burn, where land is cleared by cutting and burning vegetation, then cultivated for several years and left fallow to regain fertility.