The wages expense account for Gerry Mander, political consultants, showed the following entries for 2014. What was the portion of wages that was treated as an expense in 2013 but was not paid until 2014?
Wages expense

Question

Quizplus · Accepted Answer

Looking at the entries, the total wages expense for 2014 was $52,200 ($33,000 + $16,500 + $2,700). However, only $51,000 of wages were actually paid out in 2014 (the sum of the first two entries). This means that $1,200 of the wages expense was treated as an expense in 2013 but was not actually paid until 2014.

The Wages Expense Account for Gerry Mander, Political Consultants, Showed