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13 April, 15:33

Land $ 170,000 Equipment 66,000 Salaries Payable? Notes Payable 88,000 Supplies 14,000 Cash 26,000 Common Stock 100,000 Retained Earnings 40,000 Accounts Payable? Prepaid Rent 12,000 If the company has total assets of $288,000, what is the balance of the company's Salaries Payable account? A. $12,000.

B. $25,000.

C. $15,000.

D. Cannot be determined given the information provided.

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  1. 13 April, 17:27
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    D. Cannot be determined given the information provided.

    Explanation:

    The accounting equation deals with the 3 elements of the balance sheet namely; assets, liabilities and equity and the relationship between them as shown below.

    Assets = Liabilities + Equity

    Given;

    Total asset = $288,000

    Equity = Retained earnings + common stock

    = 40,000 + 100,000

    = $140,000

    Liabilities = $288,000 - $140,000

    = $148,000

    Liabilities include; Notes Payable 88,000, Salaries Payable? Accounts Payable?

    Since the Salaries Payable and Accounts Payable are not known, the right option is D. Cannot be determined given the information provided.
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