During 2018, Peoria Airlines paid salary expense of $40.8 million. At December 31, 2018, Peoria accrued salary

Question:

During 2018, Peoria Airlines paid salary expense of $40.8 million. At December 31, 2018, Peoria accrued salary expense of $2.3 million. Peoria then paid $2.6 million to its employees on January 3, 2019, the company’s next payday after the end of the 2018 year. For this sequence of transactions, show what Peoria would report on its 2018 income statement and on its balance sheet at the end of 2018.

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...

Fantastic news! We've Found the answer you've been seeking!