Question

During the current year, Mainzel Corp.'s income statement shows that the company accrued salary expense of 85,000; for the same period the salary payable balance increased by 3,000. Cash paid for salaries is?

Answer 1

To calculate the cash paid for salaries by Mainzel Corp., subtract the increase in salary payable ($3,000) from the salary expense ($85,000), which results in $82,000 cash paid for salaries.

Step-by-step explanation:

The question asks to calculate the cash paid for salaries by Mainzel Corp. during the current year when given the salary expense and the increase in salary payable. The salary expense is $85,000, and the salary payable balance increased by $3,000.

To find out the cash paid for salaries, we subtract the increase in salary payable from the salary expense accrual. The calculation is as follows: $85,000 (salary expense) - $3,000 (increase in salary payable) = $82,000 cash paid for salaries.