Wisconsin Candy Company has a policy of paying for all its utilities one month after they receive the bills. In its Utilities Payable account, Wisconsin Candy Company reported $282,000 on January 1, 2019, and $336,000 on December 31, 2019.
If cash paid for utilities during the year 2019 was $1,638,000, what was Wisconsin Candy Company's Utilities Expense for the year 2019?

Question

Quizplus · Accepted Answer

Beginning Utilities Payable + Utilities expense - Cash paid = Ending Utilities Payable
$282,000 + X - $1,638,000 = $336,000
X = $336,000 - $282,000 + $1,638,000
Utilities Expense = $1,692,000

Wisconsin Candy Company Has a Policy of Paying for All