Tan Traders Paid Salaries of $130 000 During the Year

question 7

Multiple Choice

Tan Traders paid salaries of $130 000 during the year and owes $2 100 for three days work carried out before the 31 December 2011 which will not be paid until January 3 2012.After the adjusting entry for the year ended 31 December 2011:

• A)Salaries in the income statement are $132 100 and accrued salaries in the balance sheet are $2 100
• B)Salaries in the income statement are $130 000 and accrued salaries in the balance sheet are $2 100
• C)Salaries in the income statement are $127 900 and accrued salaries in the balance sheet are $2 100
• D)Salaries in the income statement are $132 100 and accrued salaries in the balance sheet are $132 100

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