The income statement for Narciso Gabayan Company included the following expenses for 2011 Rent Expense P 780,000 Interest Expense 117,000 Salaries Expense 1,245,000 Listed below are the related balance sheet account balances at year end for last year and this year. 2010 2011 Prepaid Rent ------------ P 13,500 Interest Payable P 18,000 ------------ Salaries Payable 75,000 114,000 Required: 1. Compute the cash paid for rent during 2011 2. Compute the cash paid for interest during 2011 3. Compute the cash paid for salaries during 201

Question

The income statement for Narciso Gabayan Company included the following expenses for 2011 Rent Expense    P 780,000 Interest Expense       117,000 Salaries Expense    1,245,000 Listed below are the related balance sheet account balances at year end for last year and this year.        2010      2011 Prepaid Rent  ------------  P 13,500 Interest Payable  P 18,000  ------------ Salaries Payable     75,000   114,000 Required:  1. Compute the cash paid for rent during 2011 2. Compute the cash paid for interest during 2011 3. Compute the cash paid for salaries during 201

SmokeyBrown · Answer

Hi and welcome to QuestionCove!

I'd like to clarify some things about the questions and the information presented.

The questions are all asking about "cash paid" during 2011, rather than the expense numbers or the prepaid/payable amounts. I gather that you are meant to calculate cash paid from the expense and prepaid/payable numbers. Any ideas on how to do this?