Determine the missing amounts in each of the following four independent scenarios: a. W Co. had a
Question:
Determine the missing amounts in each of the following four independent scenarios:
a. W Co. had a $5,500 beginning balance in accounts payable on January 1, Year 8. During Year 8, the company incurred $45,200 of operating expenses on account and paid $43,100 cash to settle accounts payable. Based on this information alone, determine the amount of the ending balance in accounts payable.
b. W Co. had a $5,300 ending balance in accounts payable on December 31, Year 8. During Year 8, the company incurred $55,200 of operating expenses on account and paid $54,600 cash to settle accounts payable. Based on this information alone, determine the amount of the beginning balance in accounts payable.
c. W Co. had a $3,000 beginning balance in accounts payable on January 1, Year 8. During Year 8, the company incurred $73,000 of operating expenses on account. The ending balance in accounts payable was $8,500. Based on this information alone, determine the amount of cash paid to settle accounts payable.
d. W Co. had a $6,750 beginning balance in accounts payable on January 1, Year 8. During Year 8, the company paid $82,000 cash to settle accounts payable. The ending balance in accounts payable was $10,800. Based on this information alone, determine the amount of expenses incurred on account.
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
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Introductory Financial Accounting for Business
ISBN: 978-1260299441
1st edition
Authors: Thomas Edmonds, Christopher Edmonds