Question 2 4 pts The following selected account balances w e

Question 2 4 pts The following selected account balances w ere taken from Buckeye Company\'s general ledger at January 1, 2018 and Dec ember 31, 2018 Accounts receivable 36,000 Inventory 28,000 Accounts payable 31,000 Salaries payable 12,000 Investments 48,000 Land 80,000 Mortgage payable 50,000 Common stock 130,000 Retained earnings 38,000 42,000 25,000 35,000 1,000 34,000 60,000 100,000 110,000 20,000 The following information was taken from Buckeye Company\'s 2018 income statement: Sales revenue Cost of goods sold Salaries expense Gain on sale of investments Net income $420,000 300,000 90,000 2,000 s 32,000 Calculate the amount of cash paid to empl oyees for salaries during 2018

Solution

Salary payable from balance sheet and salary expenses from income statement are required for such cash payment calculation.

Required cash payment = Beginning salary payable + Salary expenses – Ending salary payable

                                         = 1,000 + 90,000 – 12,000

                                         = $79,000 (Answer)