Question 7 options: The following selected account balances were taken from Buck

Question

Question 7 options:
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 suppliers for purchases of inventory during 2005. Do not use decimals in your answer.

Explanation / Answer

Salaries Payble Opening Balance = $3,000 Salaries for 2005 = $94,000 = $97,000 Salaries Payble Closing Balance = $9,000 Salaries paid in 2005 (97000 - 9000) = $88,000 Salaries Payble Opening Balance = $3,000 Salaries for 2005 = $94,000 = $97,000 Salaries Payble Closing Balance = $9,000 Salaries paid in 2005 (97000 - 9000) = $88,000
Thank you....    Salaries Payble Opening Balance = $3,000 Salaries for 2005 = $94,000 = $97,000 Salaries Payble Closing Balance = $9,000 Salaries paid in 2005 (97000 - 9000) = $88,000

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