Question

Schneider Inc. had salaries payable of $61,200 and $91,400 at the end of 2020 and 2021, respectively. During 2021, Schneider recorded $620,300 in salaries expense in its income statement. Cash outflows for salaries in 2021 were:a. $590,000.
b. $620,000.
c. $650,000.
d. $530,000.

Answer 1

Answer:

$590,100

Explanation:

Given that,

Salaries payable at the end of 2020 = $61,200

Salaries payable at the end of 2021 = $91,400

Salaries expense recorded during 2021 = $620,300

Cash outflows for salaries in 2021:

= Salaries payable at the beginning of year 2021 + Salaries expense recorded during 2021 - Salaries payable at the ending of year 2021

= $61,200 + $620,300 - $91,400

= $590,100