Williams Company has a policy of paying for all its utilities one month after they receive the bills. In its Utilities Payable account, Williams reported $47,000 on January 1, 2019, and $56,000 on December 31, 2019.
If cash paid for utilities during the year 2019 was $273,000, what was William's Utilities Expense for the year 2019?

Question

Quizplus · Accepted Answer

The Utilities Expense for the year is calculated as: Beginning balance ($47,000) + Utilities Expense - Cash paid ($273,000) = Ending balance ($56,000). Solving for Utilities Expense gives $282,000.

Williams Company Has a Policy of Paying for All Its