Clean Dirt,Inc.had $8,000 of salaries payable at December 31,2010.During 2011,Clean Dirt's salary expense was $60,000.At December 31,2011,Clean Dirt's statement of cash flows showed cash paid for salaries of $(63,000).How much was Clean Dirt's salaries payable balance on its December 31,2011 balance sheet?
A)$5,000
B)$11,000
C)$13,000
D)$3,000

Question

Quizplus · Accepted Answer

The beginning balance of salaries payable was $8,000. During the year, $60,000 was incurred as salary expense, and $63,000 was paid. Therefore, the ending balance of salaries payable is $8,000 + $60,000 - $63,000 = $5,000.