Middleton Corporation reported utilities expense of $18,200 on its income statement for Year 1.For the year,the beginning balance in Utilities Payable was $2,500 and the ending balance was $1,500.The amount of cash that Mayes paid for utilities in Year 1 was $19,200.

Question

Quizplus · Accepted Answer

Ending balance of utilities payable of $1,500 = Beginning balance of utilities payable of $2,500 + Increase due to utilities expense of $18,200 - Decrease due to payment of utilities payable (the unknown)
Outflow for payment of utilities = $2,500 + $18,200 - $1,500 = $19,200

Middleton Corporation Reported Utilities Expense of $18,200 on Its Income