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On December 31, 2016, BIG Company had accrued salaries of $6,400. Required a. Record in general journal format the adjustment required as of December 31, 2016. b. Record the above adjustment in a horizontal statements model like the following one:

On December 31, 2016, BIG Company had accrued salaries of $6,400.
Required
a. Record in general journal format the adjustment required as of December 31, 2016.
b. Record the above adjustment in a horizontal statements model like the following one:
On December 31, 2016, BIG Company had accrued salaries of

c. Determine the amount of net income BIG would report on the 2016 income statement, assuming that BIG received $36,000 of cash revenue. What is the amount of net cash flow from operating activities for 2016?
d. What amount of salaries payable would BIG report on the December 31, 2016, balance sheet?

Transcribed Image Text:

Assets = Liab. + Equity Rev. Exp. = Net Inc. Cash Flow Sal. Pay. Ret. Earn.

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a Debit Credit Salaries Expense 6 400 Salaries Payable 6 400 b Assets Liab Eq…View the full answer


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Fundamental Financial Accounting Concepts

Fundamental Financial Accounting Concepts

ISBN: 978-0078025907

9th edition

Authors: Thomas Edmonds, Christopher Edmonds

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Posted Date: April 20, 2015 07:08:48
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