Mt Zion Inc

Multiple Choice

Mt. Zion Inc. pays its employees twice a month, on the 7^th and the 21^st. On June 21, Mt. Zion Inc. paid employee salaries of $5,000. This transaction would

A) increase stockholders' equity by $5,000.
B) decrease the balance in Salaries and Wages Expense by $5,000.
C) decrease net income for the month by $5,000.
D) be recorded by a $5,000 debit to Salaries and Wages Payable and a $4,000 credit to Salaries and Wages Expense.