Apply the revenue and expense recognition principles
Response to the following problem:
During 2014, U-Commute Airlines paid salary expense of $44.1 million. At December 31, 2014, U-Commute accrued salary expense of $2.2 million. U-Commute then paid $3.8 million to its employees on January 3, 2015, the company's next payday after the end of the 2014 year. For this sequence of transactions, show what U-Commute would report on its 2014 income statement and on its balance sheet at the end of 2014.