Question 2 4 pts The following selected account balances wer

Question 2 4 pts The following selected account balances were taken from Buckeye Company\'s general ledger at January 1, 2018 and December 31, 2018: January 1. 20 ber 31,2818 42,000 25,000 35,000 1,000 34,000 60,000 100,000 110,000 20,000 Accounts receivable Inventory Accounts payable Salaries payable Investments Land Mortgage payable Common stock Retained earnings 36,000 28,000 31,000 12,000 48,000 80,000 50,000 130,000 38,000 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 employees for salaries during 2018.

Solution

Calculation Cash paid to employees for Salaries during 2018

Cash paid for salaries = Total salary expenses - Salary outstanding during the year

=90,000-(12000-1000)

=90,000-11,000

=79,000