Salary Payable at the beginning of the month totals $ 20 comma 000. During the month, salaries of $ 120 comma 000 were accrued as expense. If ending Salary Payable is $ 14 comma 000 , what amount of cash did the company pay for salaries during the month?

Question

Business

Chase Gibbs

22 February, 07:55

Salary Payable at the beginning of the month totals $ 20 comma 000. During the month, salaries of $ 120 comma 000 were accrued as expense. If ending Salary Payable is $ 14 comma 000 , what amount of cash did the company pay for salaries during the month?

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Answers (1)

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Ryker Walton · Answer 1

Salaries paid during the month were $126,000

Explanation:

Given:

Beginning salary payable = $20,000

Salary expense accrued during the month = $120,000

Ending salary payable = $14,000

Salaries paid during the month is computed as shown below:

Salaries paid = (Beginning salary + Accrued salary expense) - ending salary payable

= (20,000 + 120,000) - 14,000

=$126,000

Therefore, salaries paid during the month were $126,000.