During 2010, Northwest Airlines paid salary expense of $38.3 million. At December 31, 2010, Northwest accrued salary

Question:

During 2010, Northwest Airlines paid salary expense of $38.3 million. At December 31, 2010, Northwest accrued salary expense of $2.8 million. Northwest then paid $1.8 million to its employees on January 3, 2011, the company’s next payday after the end of the 2010 year.
For this sequence of transactions, show what Northwest would report on its 2010 income statement and on its at the end of 2010.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...