Zimbalist Corporation reports a decrease in salaries payable of $6000. If salaries expense totaled $182,000 for the year, the cash paid to employees is:
A)$6000.
B)$176,000.
C)$182,000.
D)$188,000.

Question

Quizplus · Accepted Answer

The decrease in salaries payable indicates that the company paid more cash than the salaries expense recorded. Therefore, cash paid is $182,000 (salaries expense) + $6,000 (decrease in payable) = $188,000.

Zimbalist Corporation Reports a Decrease in Salaries Payable of $6000