Section 2 From accrual to cash - Direct Method The Pennsy Inn has incurred various activities described in each situation below: 1. During 20X2, the Pennsy Inn's total payroll expense was $805,000. The payroll payable account at the beginning and end of 20X2 equaled $6,000 and $8,000, respectively. What were the total cash disbursements for payroll during 20X2? Cash Disbursement = payroll expense - increase in payroll payable or + decrease in payroll payable Cash disbursements for payroll during 20X2 = 2. The utility expense was $30,000 during 20X2. The accrued utility expense was $3,000 and $4,000 at the beginning and end of the year, respectively. What was the total amount paid to the utility company during 20X2? Utility paid = utility expense - increase in accrued utility expense + decrease in accrued utility expense or I

The Pennsy Inn has incurred various activities described in each situation below: 1. During 20X2, the Pennsy Inn's total payroll expense was $805,000. The payroll payable account at the beginning and end of 202 equaled $6,000 and $8,000, respectively. What were the total cash disbursements for payroll during 20X2? Cash Disbursement = payroll expense - increase in payroll payable or + decrease in payroll payable Cash disbursements for payroll during 20X2 = 2. The utility expense was $30,000 during 202. The accrued utility expense was $3,000 and $4,000 at the beginning and end of the year, respectively. What was the total amount paid to the utility company during 202