Kelly Corp How Much Cash Was Paid for Salaries During 2018?

question 156

Multiple Choice

Kelly Corp.reported the following information for 2017 and 2018. $\begin{array}{lr}\text { Salaries payable, December } 31,2017 & \$ 3,700 \\\text { Salaries payable, December } 31,2018 & 1,800 \\\text { Salaries expense-2018 } & 57,000\end{array}$ How much cash was paid for salaries during 2018?

• A)$55,100
• B)$55,200
• C)$57,000
• D)$58,900

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Definitions:

Accounting Cycle

The process used by entities to analyze and record transactions, adjust the records at the end of the period, prepare financial statements, and prepare the records for the next cycle.

Adjusted Trial Balance

A list of all accounts and their balances after adjustments have been made.

Financial Statements

Consolidated records of the financial activities of a business, entity, or individual, including the balance sheet, income statement, and cash flow statement.

Temporary Accounts

Income statement (and sometimes Dividends Declared) accounts that are closed to Retained Earnings at the end of the accounting period.