Question

Olsen Company paid or collected during 2020 the following items: Insurance premiums paid $ 30,800 Interest collected 69,800 Salaries paid 280,400 The following balances have been excerpted from Olsen's balance sheets: December 31, 2020 December 31, 2019 Prepaid insurance $ 2,400 $ 3,000 Interest receivable 7,400 5,800 Salaries and wages payable 24,600 21,200 The interest revenue recorded in the income statement for 2020 was

Answer 1

See below

Step-by-step explanation:

Given the above information, first we will calculate the current year expenses paid in the current year

= $280,400 - $21,200

= $259,200

Next is to compute expense of current year not paid

= $259,200 + $24,600

= $283,800