The following are from Forman's comparative balance sheet and 2017 income statement:
$$\begin{array} { | l | r | r | }
\hline & \text { December 31,2017 } & \text { January 1, 2017 } \
\hline \text { Accounts receivable } &\$ 2 2 , 0 0 0 & \$ 19 , 0 0 0 \
\text { Unearned revenue } &3 , 0 0 0 & 4,000 \
\text { Salaries payable } & 8 , 0 0 0 &5 , 0 0 0\
\text { Sales revenue } & 154,000 & \
\text { Salaries expense } &8 8 , 0 0 0 &
\end{array}$$

Determine the amount of cash that Forman Incorporated paid for salaries during 2017.

Question

The following are from Forman's comparative balance sheet and 2017 income statement:
$$\begin{array} { | l | r | r | } 
\hline & \text { December 31,2017 } & \text { January 1, 2017 } \
\hline \text { Accounts receivable } &\$ 2 2 , 0 0 0  &  \$ 19 , 0 0 0  \
\text { Unearned revenue } &3 , 0 0 0 & 4,000 \
\text { Salaries payable } & 8 , 0 0 0  &5 , 0 0 0\
\text { Sales revenue } & 154,000 & \
\text { Salaries expense } &8 8 , 0 0 0 &
\end{array}$$

Determine the amount of cash that Forman Incorporated paid for salaries during 2017.

Quizplus · Accepted Answer

To determine the amount of cash paid for salaries during 2017, we need to look at the income statement. The income statement shows that salaries expense for 2017 was $85,000. This is the amount of salary expense that was recognized on the income statement, not necessarily the amount of cash that was paid. However, since the question is asking for the amount of cash paid, we can assume that the entire $85,000 was paid in cash. Therefore, the answer is C) $85,000.

The Following Are from Forman's Comparative Balance Sheet and 2017