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On December 31, 2011, CST Company had accrued salaries of $4,800.
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 CST would report on the 2013 income statement, assuming that CST received $24,000 of cash revenue. What is the amount of net cash flow from operating activities for 2013?
d. What amount of salaries payable would CST report on the December 31, 2013, balance sheet?
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