Question

Panjim began 2015 with salaries payable balance of $75,000. It had 2015 salary expense of $80,000. Its 2015 ending salaries payable balance must be______.

a. $95,000.
b. 
$55,000.
c. 
$155,000.

Answer 1

c. $155,000

Step-by-step explanation:

The computation of the ending balance of salaries payable is shown below:

= Beginning balance of salaries payable + salary expense - payment made during the year

= $75,000 + $80,000 + $0

= $155,000

By applying the above formula, we can determined the ending balance of salaries payable and the same is to be considered

hence, the correct option is c.