Carrington,Inc.recorded $97,000 in salary expense for January 2017.Its beginning balance in salaries payable was $3,000,and its ending balance was $4,000.How much was paid in cash for salaries during January 2017?
A)$96,000
B)$97,000
C)$98,000
D)$99,000

Question

Quizplus · Accepted Answer

The cash paid for salaries is calculated by adding the salary expense to the decrease in salaries payable or subtracting any increase. Here, the salary expense is $97,000, and the salaries payable increased by $1,000 (from $3,000 to $4,000), so the cash paid is $97,000 - $1,000 = $96,000.