Iowa Corporation had a beginning balance of $8,600 in Utilities Payable account at the start of the year and an ending balance of $4,000.During the year Iowa recorded $10,000 of utilities expense.How much cash did Iowa pay the utility company during the year?
A)$14,600
B)$5,400
C)$10,00
D)Can't be determined with the information given

Question

Iowa Corporation had a beginning balance of $8,600 in Utilities Payable account at the start of the year and an ending balance of $4,000.During the year Iowa recorded $10,000 of utilities expense.How much cash did Iowa pay the utility company during the year? 
A)$14,600
B)$5,400
C)$10,00
D)Can't be determined with the information given

Quizplus · Accepted Answer

The cash paid is calculated as: Beginning balance ($8,600) + Utilities expense ($10,000) - Ending balance ($4,000) = $14,600.

Iowa Corporation Had a Beginning Balance of $8,600 in Utilities