State Community College, a Public College, Grants Faculty Members a One-Year

Multiple Choice

State Community College, a public college, grants faculty members a one-year sabbatical leave after each seven years of service. There are no requirements for research, study, or service during the compensated sabbatical leave. A particular faculty member earns $40,000 per year. Assuming that the college maintains its books and records in a manner that facilitates the preparation of government-wide financial statements and assuming that any appropriate accruals have been made, what is the appropriate entry to record the employee's salary paid while on sabbatical?

A) Debit Expenses $40,000; Credit Cash $40,000.
B) Debit Sabbatical leave payable $40,000; Credit Cash $40,000.
C) Debit Expenditures $40,000; Credit Cash $40,000.
D) No entry required.