[amolson]

It's me again. Sorry...

I have a series of question surrounding an account and I think I have the right answers but it seems too easy. :confused:


Salaries Payable
22,580
398,120 388,400

1. What was the salary expense for 2005?
Answer: $398,120
2. How much was pd to employees in 2005 for work done in 2004?
Answer: $22,580
3. How much was pd to employees in 2005 for work done in 2005?
Answer: $375,540 (398,120 – 22,580)
4. How much will be pd to employees in 2006 for work done in 2005.
Answer: $12,860 (398,120 – 22,580 – 388,400)

With the problems that I've had with previous questions, I don't see how this could be right. Maybe I am just doubting myself? I hope. Ha ha

[CaptainForest]

Salaries Payable Account Summary:

At the beginning of the year you had a credit balance of 22,580

During the year, you made 398,120 of debits and 388,400 of credits to the account.

Therefore, your ending balance at the end of 2005 should be 22,580 + 388,400 – 398,120 = $12,860 credit balance

Therefore, to answer your questions, I will re-order them a bit:


2. How much was pd to employees in 2005 for work done in 2004?
Answer: $22,580

I agree with you on that.


1. What was the salary expense for 2005?
Additions of 388,400 were made during 2005, so therefore the salary expense for 2005 was 388,400.


3. How much was pd to employees in 2005 for work done in 2005?
Answer: $375,540 (398,120 – 22,580)

I agree.


4. How much will be pd to employees in 2006 for work done in 2005.
Answer: $12,860 (398,120 – 22,580 – 388,400)

I agree. As 12,860 is the ending balance in 2005.

[amolson]

Thanks CF! I guess I wasn't too far off.