Flagg, Inc. records adjusting entries at its December 31 year end. At December 31, employees had earned $9,200 of unpaid and unrecorded salaries. The next payday is January 3, at which time $23,000 will be paid. Prepare the January 1 journal entry to reverse the effect of the December 31 salary expense accrual. Debit Salaries expense $9,200; credit Salaries payable $9,200.
Debit Salaries expense $13,800; debit Salaries payable $9,200; credit Cash $23,000.
Debit Salaries payable $13,800; credit Cash $13,800.
Debit Salaries payable $9,200, credit Salaries expense $9,200.
Debit Salaries expense $13,800; credit Salaries payable $13,800.

Consider the scenario below and let us know if you believe lauren smith's actions to be ethical. let us know why or why not. lauren smith is the controller for sports central, a chain of sporting goods stores. she has been asked to recommend a site for a new store. lauren has an uncle who owns a shopping plaza in the area of town where the new store is to be located, so she decides to contact her uncle about leasing space in his plaza. lauren also contacted several other shopping plazas and malls, but her uncle’s store turned out to be the most economical place to lease. therefore, lauren recommended locating the new store in her uncle’s shopping plaza. in making her recommendation to management, she did not disclose that her uncle owns the shopping plaza. if management decided to go with lauren's uncle's plaza, what additional information would be needed in the financial statements?