Question

Taylor Company had a salaries payable balance of $18,000 on December 31, 2014. During 2015, it paid $50,000 in cash as salaries, and recorded a salary expense of $50,000. What is its December 31, 2015, salaries payable balance?a. $50,000 b. $18,000 c. $100,000 d. Cannot be determined from the information provided

Answer 1

$18,000

Step-by-step explanation:

Given data for Taylor Company;

Salaries payable at the beginning of 2015 (end of 2014) = $18,000

Salary expense during the year (2015) = $50,000

Salaries paid during the year = $50,000

Salary payable at end of year (2015) = ?

Let the salary payable at end of year= S

Using the formula

Salaries payable at the beginning of the year + Salary expense during the year - Salaries paid = Salary payable at end of year

$18,000 + $50,000 - $50,000 =S

S = $18,000

Salaries payable as at December 31, 2015 is $18,000.