Boston Consulting pays its employees a total of $1M for salaries at the end of the month in cash and makes no payments for salaries at any other point in the month. The CFO needs a balance sheet and income statement constructed on November 15 (November has 30 days). What journal entry would be made by the accountants to build the current balance sheet?
A) Debit salaries expense $500K; credit cash $500K
B) Debit salaries expense $500K; credit salaries payable $500K
C) Debit salaries expense $1M; credit cash $1M
D) Debit salaries expense $1M; credit salaries payable $1M
E) Debit salaries expense $1M; credit cash $500K and credit salaries paybale $500K