Question

Determine the missing amounts in each of the following four independent scenarios: a. X Co. had a $4,700 beginning balance in accounts payable on January 1, Year 8. During Year 8, the company incurred $67,600 of operating expenses on account and paid $68,900 cash to settle accounts payable. Based on this information alone, determine the amount of the ending balance in accounts payable. b. X Co. had a $5,300 ending balance in accounts payable on December 31, Year 8. During Year 8, the company incurred $66,400 of operating expenses on account and paid $64,100 cash to settle accounts payable. Based on this information alone, determine the amount of the beginning balance in accounts payable. c. X Co. had a $4,100 beginning balance in accounts payable on January 1, Year 8. During Year 8, the company incurred $67,600 of operating expenses on account. The ending balance in accounts payable was $4,800. Based on this information alone, determine the amount of cash paid to settle accounts payable. d. X Co. had a $7,700 beginning balance in accounts payable on January 1, Year 8. During Year 8, the company paid $77,300 cash to settle accounts payable. The ending balance in accounts payable was $9,800. Based on this information alone, determine the amount of expenses incurred on account.

Answer 1

Answer:

a. $3,400

b. $3,000

c. $66,900

d. $79,400

Explanation:

a. The computation of ending balance in accounts payable is shown below:

= Beginning balance + operating expenses - cash paid

= $4,700 + $67,600 - $68,900

= $3,400

b. The computation of beginning balance in accounts payable shown below:

= Ending balance + cash paid - operating expenses

= $5,300 + $64,100 - $66,400

= $3,000

c. The computation of cash paid is shown below:

= Beginning balance + operating expenses - ending balance

= $4,100 + $67,600 - $4,800

= $66,900

d. The computation of expenses incurred is  shown below:

= Ending balance + cash paid - beginning balance

= $9,800 + $77,300 - $7,700

= $79,400