Answer:
$50,530
Explanation:
The computation of the amount of expenses reported on the income statement is shown below:
= Cash paid - Opening balance of accrued expenses + Closing balance accrued expenses + Opening balance of prepaid expenses - Closing balance of prepaid expenses
= $49,850 - $1,200 + $2,100 + $630 - $850
= $50,530
We added the ending balance of accrued expenses and opening balance of prepaid expenses while deducting the ending balance of accrued expenses and closing balance of prepaid expenses
