Salary Expense on the income statement was $183,200 for the year ended December 31, 2004. The Salary Payable account decreased $19,230 during the same period. The amount of cash payments to employees for the year ended December 31, 2004, was:

Question

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The cash payments to employees can be calculated by adding the decrease in Salary Payable to the Salary Expense. Since Salary Payable decreased by $19,230, it means that this amount was paid in cash, in addition to the salary expense recorded. Therefore, the cash payments were $183,200 + $19,230 = $202,430.

Salary Expense on the Income Statement Was $183,200 for the Year