Gates Corporation reported utilities expense of $112,800 on its income statement.The beginning balance in utilities payable was $8,000 and the ending balance was $4,000.The amount of cash that Gates paid for utilities during the year was $116,800.

Question

Quizplus · Accepted Answer

The cash paid for utilities is calculated as the utilities expense plus the decrease in utilities payable, or minus the increase in utilities payable. Here, it's $112,800 + ($8,000 - $4,000) = $116,800.

Gates Corporation Reported Utilities Expense of $112,800 on Its Income