Question

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?

Answer 1

Salaries paid during the month were $126,000

Step-by-step 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.