during 2024, peoria airlines paid salary expense of $40.8 million. at december 31, 2024, peoria accrued…
during 2024, peoria airlines paid salary expense of $40.8 million. at december 31, 2024, peoria accrued salary expense of $2.3 million. peoria then paid $2.6 million to its employees on january 3, 2025, the companys next payday after the end of the 2024 year. for this sequence of transactions, show what peoria would report on its 2024 income statement and on its balance sheet at the end of 2024. complete the table below to show what peoria would report on its 2024 income statement. (enter amount in millions as provided to you in the problem statement, $x.x.) 2024 (amount in millions) income statement account
Answer
Explanation:
Step1: Determine salary expense for income statement
Under the accrual - basis accounting, the salary expense reported on the income statement is the sum of the salary paid during the year and the accrued salary expense at the end of the year. The salary paid in 2024 is $40.8$ million and the accrued salary expense at December 31, 2024 is $2.3$ million. $40.8 + 2.3$
Step2: Calculate the result
$40.8+2.3 = 43.1$ million
On the balance - sheet, the accrued salary expense of $2.3$ million is reported as a liability (accrued salaries payable) at the end of 2024.
Answer:
| Income Statement account | 2024 (amount in millions) |
|---|---|
| Salary Expense | 43.1 |