Question

Panjim began 2015 with salaries payable balance of $75,000. It had 2015 salary expense of $80,000. Its 2015 ending salaries payable balance must be _______.a) $95,000

b) $55,000
c) $155,000

Answer 1

c) $155,000

Step-by-step explanation:

Beginning Balance of Salaries Payable = $75,000

Salary Expense during 2015 = $80,000

Ending Salaries Payable Balance = $75,000+$80,000= $155,000

Here we assume that all the salaries have been added up in the salaries payable account during the year 2015 and not yet paid by the end of the year 2015 thus making a total of ($75,000+$80,000) $155,000.

If only the salaries accrued during the years 2015 of $ 80,000 had been paid the balance of salaries payable would have been the same as the beginning balance of $ 75,000.