Question 9 1 point The employees of Sinclair Services Compan

Question 9 (1 point) The employees of Sinclair Services Company worked the last two weeks of December. They received their paychecks on January 2. Which of the following accounts should appear on the balance sheet as of December 31? A) Salaries Payable B) Salaries Expense C) Prepaid Expense D) Accounts Payable

Solution

Ans. Is A Salaries payable

Explanation: Balance sheet consists of all assets and liabilities account and personal account whereas income statement consists of all loss, expenses and gain, income accounts. Since employees had worked for last two weeks in Dec and their payment is still due on Dec 31 so it’s a liability on part of company account and its recognized in form of salaries payable and shown under current liability side.