Use the following information to calculate cash paid for wages and salaries:
A)$157,400.
B)$163,800.
C)$168,000.
D)$172,200.
E)$174,400.

Question

Use the following information to calculate cash paid for wages and salaries: 
A)$157,400. 
B)$163,800. 
C)$168,000. 
D)$172,200. 
E)$174,400.

Quizplus · Accepted Answer

The cash paid for wages and salaries can be calculated by adding the beginning balance of wages and salaries payable ($45,400) with the total of wages and salaries expense ($115,400) and then subtracting the ending balance of wages and salaries payable ($2,000). 
Therefore,
Cash paid for wages and salaries = Beginning balance of wages and salaries payable + Wages and salaries expense - Ending balance of wages and salaries payable
Cash paid for wages and salaries = $45,400 + $115,400 - $2,000 = $163,800
Hence, the correct choice is B.

Use the Following Information to Calculate Cash Paid for Wages