Wildcat Supply had a beginning balance of $600 in Utilities Payable account at the start of the year and an ending balance of $1,000.During the year Wildcat paid $4,000 cash to the utilities company.How much utilities expense was incurred during this year?
A)$4,000
B)$4,400
C)$4,600
D)Can't be determined with the information given

Question

Quizplus · Accepted Answer

To calculate the utilities expense incurred during the year, we need to use the following formula:
Utilities expense = Beginning balance + Payments made - Ending balance
Utilities expense = $600 + $4,000 - $1,000
Utilities expense = $4,600
Therefore, the answer is B) $4,400, which is the closest option.

Wildcat Supply Had a Beginning Balance of $600 in Utilities