The employees of Curel, Inc. get paid every Friday for a 5-day workweek (Monday through...
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Accounting
The employees of Curel, Inc. get paid every Friday for a 5-day workweek (Monday through Friday). The total payroll is $6,000 per day of work. If the accounting period ends on Tuesday of a given week, what adjustment must be made to the company's accounting records?
A. Increase Salaries payable by $12,000 and decrease shareholders' equity by recognizing Salaries expense for the same amount.
B. No adjustment is necessary because there is no expense until the employees are paid on Friday.
C. Decrease Cash by $12,000 and decrease shareholders' equity by recognizing Salaries expense for the same amount.
D.Increase Salaries payable by $12,000 and increase shareholders' equity by recognizing Salaries expense for the same amount.
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