Final answer:
The correct answer to the amount of cash paid for expenses during 2019 by Harrison Company is $84,000, calculated by starting with the beginning balance of accounts payable, adding the total expenses charged during the year, and subtracting the ending balance.
Step-by-step explanation:
To determine the amount of cash paid for expenses by Harrison Company during 2019, we can use the following accounts payable equation:
- Start with the beginning Accounts Payable balance.
- Add the total expenses charged on account during the year to get the total amount payable.
- Subtract the ending Accounts Payable balance to find out the cash paid during the year.
So, the calculation would look like this:
Beginning balance of Accounts Payable: $12,000 + Total expenses charged on account during the year: $108,000
= Total amount payable: $120,000 - Ending balance of Accounts Payable: $36,000
= Cash paid for expenses during 2019: $84,000
Therefore, the correct answer is d. $84,000.