Question

If the company paid $12,500 in salaries and wages in 2020, what was the balance in salaries and wages payable on December 31.2019?

Presented below are adjusted and unadjusted trial balance

December 31, 2020		Unadjusted ( U )			Adjusted (A)
Balance Sheet ( B)/ Income Statement Item (I)		Dr	Cr		Dr	Cr
B	Cash	11,000			11,000
B	Accounts Receivable	20,000			23,500
B	Supplies	8,400			3,000
B	Prepaid Insurance	3,350			2,500
B	Equipment	60,000			60,000
B	Accumulated Depreciation - Equipment		28,000			33,000
B	Accounts Payable		5,000			5,000
B	Interest Payable					150
B	Notes Payable		5,000			5,000
B	Unearned Service Revenue		7,000			5,600
B	Salaries and Wages Payable		0			1,300
B	Common Stock		10,000			10,000
B	Retained Earnings		3,500			3,500
I	Service Revenue		58,600			63,500
I	Salaries and Wages Expense	10,000			11,300
I	Insurance Expense				850
I	Interest Expense	350			500
I	Depreciation Expense				5,000
I	Supplies Expense				5,400
I	Rent Expense	4,000			4,000
	Totals	117,100	117,100		127,050	127,050

Answer 1

Cash paid for salaries and wages in 2020 = $12,500

Salaries and wages payable on December 31, 2020 = $1,300

Salaries and wages expense for year 2020 = $11,300

Cash paid for Salaries and wages of 2020 = $10,000

Salaries and wages payable on December 31, 2019 = Cash paid for salaries and wages in 2020 - Cash paid for Salaries and wages of 2020

= 12,500-10,000

= $2,500