Question

At the beginning of the period, Utilities Payable equals $500. At the end of the period, Utilities Payable equals $700. If Utilities Expense for the period equals $1,500, what was the cash paid for utilities for the period?

Answer 1

Answer: $1,300

Explanation:

Beginning Period for Utilities = $500

Ending Period for Utilities = $700

Expenses for the period = $1,500

Cash paid for the period =

$500 + $1,500 = $2,000

less ending period utilities bal =$700

= $2,000 - $700 = $1,300

Cash paid during the period is $1,300