The 2010 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:
$\begin{array}{lrrr}& \text { December 31, 2010 } & \text { December 31, } 2009 \
\text { Prepaid rent } & \$ 1,200 & \$ 0 \
\text { Salaries pavable } & 400 & 800
\end{array}$
a. Compute cash paid for rent during the year.
b. Compute cash paid for salaries during the year.

Question

The 2010 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:
 $\begin{array}{lrrr}& \text { December 31, 2010 } & \text { December 31, } 2009 \
\text { Prepaid rent } & \$ 1,200 & \$  0 \
\text { Salaries pavable } & 400 & 800
\end{array}$ 
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 2010 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:
 $\begin{array}{lrrr}& \text { December 31, 2010 } & \text { December 31, } 2009 \
\text { Prepaid rent } & \$ 1,200 & \$  0 \
\text { Salaries pavable } & 400 & 800
\end{array}$ 
a. Compute cash paid for rent during the year.
b. Compute cash paid for salaries during the year.

The 2010 Income Statement for Newton Company Showed Rent Expense