Salary Expense on the income statement was $264,780 for the year ended December 31, 2020. The Salary Payable account decreased $24,370 during the same period. The amount of cash payments to employees for the year ended December 31, 2020, is:

Question

Quizplus · Accepted Answer

The cash payments to employees can be calculated by adding the decrease in Salary Payable to the Salary Expense. If Salary Expense was $264,780 and Salary Payable decreased by $24,370, it means that more was paid out than was expensed, so $264,780 + $24,370 = $289,150.

Salary Expense on the Income Statement Was $264,780 for the Year