The Employees of Dew Drop Inn Get Paid Every Friday

Multiple Choice

The employees of Dew Drop Inn get paid every Friday for a 5-day workweek (Monday through Friday) .The total payroll is $5,000 per day of work.If the accounting period ends on Thursday of a given week,and the proper adjustment is made on Thursday,what will be the effect of the adjustment on the company's financial statements?

A) The balance sheet will report Salaries payable of $20,000.
B) The income statement will report additional salaries expense of $25,000.
C) The balance sheet will report additional salaries expense of $20,000.
D) The income statement will report Salaries payable of $20,000.