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The following selected account balances were taken from Buckeye Company's general ledger at January 1, 2005 and December 31, 2005:

January 1, 2005 December 31, 2005

  • Inventory 52,000 49,000
  • Accounts payable 40,000 71,000
  • Salaries payable 3,000 9,000
  • Investments 68,000 75,000
  • Accounts receivable 83,000 56,000
  • Land 58,000 88,000
  • Mortgage payable 120,000 95,000
  • Common stock 100,000 180,000
  • Retained earnings 22,000 35,000

The following information was taken from Buckeye Company's 2005 income statement:

  • Sales revenue $420,000
  • Cost of goods sold 300,000
  • Salaries expense 94,000
  • Net income $ 26,000

Calculate the amount of cash paid to employees for salaries during 2005. Do not use decimals in your answer.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9953768

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