Salary payable at January 1,2017,was $53,420 and at December 31,2017,was $45,690.If the income statement reported salary expense of $319,640 for the year ended December 31,2017,the cash payments to employees during the same time period would be:

Question

Quizplus · Accepted Answer

The decrease in salary payable from Jan 1, 2017, to Dec 31, 2017, is $7,730. This means that the company paid $7,730 less in salaries than they accrued during the year. 
So, actual cash payments to employees for the year would be: 
Salary Expense - Decrease in Salary Payable 
= $319,640 - $7,730 
= $311,910 
Therefore, the answer is choice B, which is $327,370.

Salary Payable at January 1,2017,was $53,420 and at December 31,2017,was