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.) income statement account 2024 (amount in millions) salary expense $ 43.1 complete the table below to show what peoria would report on its 2024 balance sheet. (enter amount in millions as provided to you in the problem statement, $x.x.) balance sheet account 2024 (amount in millions)
Answer
Explanation:
Step1: Determine salary expense for income statement
The salary expense reported on the income statement includes both the paid - in - 2024 and the accrued as of December 31, 2024. So we add the $40.8$ million paid in 2024 and the $2.3$ million accrued at year - end. $40.8 + 2.3=43.1$ million.
Step2: Determine liability for balance sheet
The accrued salary expense of $2.3$ million as of December 31, 2024 is a liability. It represents the amount the company owes its employees for work done in 2024 but not yet paid. So the balance sheet account is Salaries Payable and the amount is $2.3$ million.
Answer:
| Balance Sheet account | 2024 (amount in millions) |
|---|---|
| Salaries Payable | $2.3$ |