Michael Myers & Co Paid Salaries of $150 000 During

Multiple Choice

Michael Myers & Co paid salaries of $150 000 during the year and owes $2200 for three days work carried out before the 31 December 2014 which will not be paid until January 3 2015. After the adjusting entry for the year ended 31 December 2014:

A) salaries in the income statement are $152 200 and accrued salaries in the balance sheet are $2200.
B) salaries in the income statement are $150 000 and accrued salaries in the balance sheet are $2200.
C) salaries in the income statement are $147 800 and accrued salaries in the balance sheet are $2200.
D) salaries in the income statement are $152 200 and accrued salaries in the balance sheet are zero.