Carrington, Inc.recorded $97,000 in salary expense for January 2016.Its beginning balance in salaries payable was $3,000 and its ending balance was $4,000.How much was paid in cash for salaries during January 2016?
A) $96,000
B) $97,000
C) $98,000
D) $99,000

Question

Quizplus · Accepted Answer

The cash paid for salaries is calculated as: Beginning Salaries Payable + Salary Expense - Ending Salaries Payable = Cash Paid. Thus, $3,000 + $97,000 - $4,000 = $96,000.