The Following Balances Have Been Excerpted from Bain Balance Sheets

question 46

Multiple Choice

The following balances have been excerpted from Bain balance sheets: $\begin{array}{lcr}& \text { December 31, 2014}& \text { December 31,2013}\\\hline \text { Prepaid Insurance }&66,000 & \$ 7,500 \\\text { Interest Receivable }&3,700 & 14,500 \\\text { Salaries Payable }&61,500 & 53,000\\\\\text { Bain Company paid or collected during } 2014 \text { the following items: }\\\text { Insurance premiums paid. }&\$41,500\\\text { Interest collected }&123,500\\\text { Salaries paid }&481,000\end{array}$ The salary expense on the income statement for 2014 was

• A)$366,500.
• B)$472,500.
• C)$489,500.
• D)$595,500.
• E)None of these answer choices is correct.

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