Question

Required a. Recond the March I cash payment in gencrall journal format & Recerd in general journal foemat the ajunsiment required as of December 31.2016 .Recond all ceats in a boriontal ats model liãe the ollowing onc ha amsoust of net incone will Chmokoe Company report on the 2016 income statment l6 halance shoot LO 3-2 Exercise 3-16A Recondingnccrud salearies and idennitying their efect on financial statenvents n December 34, 2016 BIG Company had erued salaries of 56400 Required k Recend the above adjastrecet in a hntalnts model like the felewing what amount of salario payable wsld BIG report nthe Decembơ ". Son blanco tor LO 34 Exercise 3-17A Preparingclesingentries The fellowing financial infortionwen from the books of Zone Healh Cluh, a smalls Commen Stock

Answer 1

Solution 3-16A

a. Adjustment required on December 31, 2016, is as follows:

Date	Particulars	L.F	Debit	Credit
2016
Dec-31	Salaries Expense		6,400
	Salaries Payable			6,400
	(For salaries accrued)

b. Adjustment is recorded as shown below:

Assets =	Liabilities +	Equity	Revenue -	Expenses =	Net Income	Cash Flow
	6,400			6,400	-6,400	Increase in operating activities by $6,400

c.

Amount of net income reported on 2016 Income Statement is

Revenue $36,000

Less: Salaries Expense 6,400

Net Income $29,600

d. Salaries Payable BIG would report on the balance sheet is $6,400.