The salaries expense account on the worksheet shows an opening balance of $15 000. The worksheet includes a reversing entry for $1800 for salaries prepaid in the previous year and $1400 for salaries accrued in the current year. The balance of the salaries expense account that will be transferred to the income statement column is:
A) $11 800.
B) $14 600.
C) $15 400.
D) $18 200.

Question

Quizplus · Accepted Answer

The opening balance is $15,000. The reversing entry for prepaid salaries reduces this by $1,800, and the accrued salaries increase it by $1,400. Thus, the balance transferred to the income statement is $15,000 - $1,800 + $1,400 = $14,600. However, the correct calculation should be $15,000 + $1,400 (accrued) - $1,800 (prepaid) = $18,200.

The Salaries Expense Account on the Worksheet Shows an Opening