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On December 31, 2013, Blue Bayou Company had accrued salaries of $12,000.
Required
a. Record in general journal format the adjustment required as of December 31, 2013.
b. Record the above adjustment in a horizontal statements model like the following one:
c. Determine the amount of net income Blue Bayou would report on the 2013 income statement, assuming that Blue Bayou received $29,000 of cash revenue. What is the amount of net cash flow from operating activities for 2013?
d. What amount of salaries payable would Blue Bayou report on the December 31, 2013, balance sheet?
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