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Demski Company pays its employees on the 1st and 15th of each month. It is March 31 and Demski is preparing financial statements for this quarter. Its employees have earned $96,000 since the 15th of March and have not yet been paid. How will Demski’s balance sheet and income statement reflect the accrual of wages on March 31?

Respuesta :

Answer:

Explanation:

In the given transaction, it would impact the income statement and the balance sheet in the increment manner

That means The income statement would increase by $96,000 as it reflect the wages expense in the debit side of the income statement

And, the balance sheet would increase by $96,000 as it reflect the wages payable in the credit side of the balance statement under the current liabilities side of the balance sheet

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