The Total Payroll Is $4,000 Per Day of Work

Multiple Choice

The total payroll is $4,000 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 $8,000 and decrease shareholders' equity by recognizing Salaries expense for the same amount.
B) Decrease Salaries payable by $8,000 and increase shareholders' equity by recognizing Salaries expense for the same amount.
C) Decrease Cash by $8,000 and decrease shareholders' equity by recognizing Salaries expense for the same amount.
D) No adjustment is necessary because the expense is not recorded until the employees are paid.