What is the effect of a debit to the salary payable on income?

Accounting Dec 16, 2020

Expert Solution

Debit to affects income on the date the related salary payable was incurred. Assuming the salary is incurred in the current year and immediately paid in the current year, the amount debited to salary payable is the amount that is treated as salary expense. On the other hand, if it was incurred in Year 1 but only paid in Year 2, the Income of Year 2 is not affected. Only the balance sheet account- salaries payable and cash is affected.

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