Tulsa Corp.reported the following information for 2017 and 2018:$\begin{array}{lr}
\text { Interest payable, December } 31,2017 & \$ 5,700 \
\text { Interest payable, December 31,2018 } & 6,200 \
\text { Interest expense-2018 } & 12,250
\end{array}$ How much cash was paid for interest during 2018?

A)$11,750
B)$12,250
C)$12,500
D)$12,750

Question

Tulsa Corp.reported the following information for 2017 and 2018:$\begin{array}{lr}
\text { Interest payable, December } 31,2017 & \$ 5,700 \
\text { Interest payable, December 31,2018 } & 6,200 \
\text { Interest expense-2018 } & 12,250
\end{array}$ How much cash was paid for interest during 2018?

A)$11,750
B)$12,250
C)$12,500
D)$12,750

Quizplus · Accepted Answer

To calculate the cash paid for interest during 2018, we use the formula: Cash paid for interest = Interest expense + Beginning interest payable - Ending interest payable. Thus, Cash paid for interest = $12,250 + $5,700 - $6,200 = $11,750.

Tulsa Corp How Much Cash Was Paid for Interest During 2018?