Middleton Corporation reported utilities expense of $18,200 on its income statement for 2016.For the year,the beginning balance in Utilities Payable was $2,500 and the ending balance was $1,500.The amount of cash that Mayes paid for utilities in 2016 was $19,200.

Question

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The cash paid for utilities is calculated as: Utilities Expense + Beginning Utilities Payable - Ending Utilities Payable = $18,200 + $2,500 - $1,500 = $19,200.

Middleton Corporation Reported Utilities Expense of $18,200 on Its Income