Calder Corporation reported salary expense of $65,000 on its 2017 income statement.It reported cash payments to employees of $57,500 on the 2017 cash flow statement.The ending 2017 balance in the salary payable account was $12,000.What was the beginning 2017 balance in the salary payable account?

Question

Quizplus · Accepted Answer

The beginning balance in the salary payable account can be calculated by adjusting the ending balance for the reported salary expense and cash payments. The formula is: Beginning Salary Payable = Ending Salary Payable + Cash Payments to Employees - Salary Expense. Plugging in the given values: $12,000 + $57,500 - $65,000 = $4,500.

Calder Corporation Reported Salary Expense of $65,000 on Its 2017