Use the following information to calculate cash paid for salaries: $$\begin{array} { | l | r | }
\hline \text { Salaries expense } & \$ 175,000 \
\hline \text { Salaries payable, January 1 } & 20,000 \
\hline \text { Salaries payable, December } 31 & 12,000 \
\hline
\end{array}$$
A) $175,000.
B) $183,000.
C) $167,000.
D) $143,000.
E) $155,000.

Question

Use the following information to calculate cash paid for salaries: $$\begin{array} { | l | r | } 
\hline \text { Salaries expense } & \$ 175,000 \
\hline \text { Salaries payable, January 1 } & 20,000 \
\hline \text { Salaries payable, December } 31 & 12,000 \
\hline
\end{array}$$
A) $175,000.
B) $183,000.
C) $167,000.
D) $143,000.
E) $155,000.

Quizplus · Accepted Answer

To calculate cash paid for salaries, adjust the salaries expense by the change in salaries payable: $175,000 + ($20,000 - $12,000) = $183,000.

Use the Following Information to Calculate Cash Paid for Salaries