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.\n\ncomplete 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.)\n\nincome statement account 2024 (amount in millions)\nsalary expense $ 43.1\n\ncomplete 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.)\n\nbalance sheet account 2024 (amount in millions)
Answer
Explanation:
Step1: Calculate salary expense for income statement
The salary expense on the income statement is the sum of the paid - during - the - year salary and the accrued salary expense. The paid salary expense in 2024 is $40.8$ million and the accrued salary expense at December 31, 2024 is $2.3$ million. So, $40.8 + 2.3=43.1$ million.
Step2: Determine balance sheet account and amount
The accrued salary expense of $2.3$ million creates a liability. The balance sheet account is "Salaries Payable" and the amount is $2.3$ million.
Answer:
| Balance Sheet account | 2024 (amount in millions) |
|---|---|
| Salaries Payable | $2.3$ |