Mt. Zion Inc. pays its employees twice a month, on the 7th and the 21st. On June 21, Mt. Zion Inc. paid employee salaries of 5,000. This transaction would ______.
1) increase stockholders' equity by 5,000.
2) decrease the balance in Salaries and Wages Expense by 5,000.
3) decrease net income for the month by 5,000.
4) be recorded by a 5,000 debit to Salaries and Wages Payable and a 4,000 credit to Salaries and Wages Expense.
