The amounts in the Salaries Payable account for Ammonia Company were $14,500 and $16,000 on December 31,2016,and December 31,2017,respectively.Cash paid to employees for the years ended December 31,2016,and December 31,2017,were $255,000 and $280,000,respectively.Ammonia Company's Salary Expense for the year ended December 31,2017,was:
A) $253,500
B) $281,500
C) $278,500
D) $256,500

Question

Quizplus · Accepted Answer

The Salary Expense for 2017 is calculated by taking the beginning balance of Salaries Payable ($14,500), adding the cash paid to employees ($280,000), and subtracting the ending balance of Salaries Payable ($16,000). This results in a Salary Expense of $281,500.

The Amounts in the Salaries Payable Account for Ammonia Company