Use This Information to Answer the Following Question

question 16

Multiple Choice

Use this information to answer the following question. The following totals for the month of September were taken from the payroll register of Meadors Company:

-The entry to record the payment of net payroll would include a

• A)debit to Salaries Payable for $24,000.
• B)debit to Salaries Payable for $15,900.
• C)debit to Salaries Payable for $17,000.
• D)credit to Cash for $18,100.

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Definitions:

Prepaid Expenses

Payments made in advance for goods or services, which are recorded as assets until they are actually used.

Noncash Investing

Investment activities that do not involve the immediate outflow of cash but may involve the exchange of non-cash assets or liabilities.

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing corporation, reducing the amount of outstanding stock on the company’s shareholders’ equity account.

Note Payable

A financial obligation in the form of a written promissory note that specifies the principal amount, interest rate, and due date.