The 20xx income statement for Newton Company showed rent expense of $10,800 and salaries expense of $7,200.The related balance sheet account balances at year end for last year and this year were as follows:
$$\begin{array} { | l | r | r | }
\hline & \text { This Year } & \text { Last Year } \

\hline
\ \text { Prepaid rent } & \$1,200 & \$ 0\
\text { Salaries payable } & 400 & \text { 800 } \
\hline
\end{array}$$
a. Compute cash paid for rent during the year.
b. Compute cash paid for salaries during the year.

Question

The 20xx income statement for Newton Company showed rent expense of $10,800 and salaries expense of $7,200.The related balance sheet account balances at year end for last year and this year were as follows:
 $$\begin{array} { | l | r | r | } 
\hline & \text { This Year } & \text { Last Year } \

\hline
\ \text { Prepaid rent } & \$1,200 & \$ 0\
\text { Salaries payable } & 400 & \text { 800 } \
\hline
\end{array}$$ 
a. Compute cash paid for rent during the year.
b. Compute cash paid for salaries during the year.

Quizplus · Accepted Answer

The Answer of The 20xx income statement for Newton Company showed rent expense of $10,800 and salaries expense of $7,200.The related balance sheet account balances at year end for last year and this year were as follows:
 $$\begin{array} { | l | r | r | } 
\hline & \text { This Year } & \text { Last Year } \

\hline
\ \text { Prepaid rent } & \$1,200 & \$ 0\
\text { Salaries payable } & 400 & \text { 800 } \
\hline
\end{array}$$ 
a. Compute cash paid for rent during the year.
b. Compute cash paid for salaries during the year.

The 20xx Income Statement for Newton Company Showed Rent Expense