The Waller Company uses the accrual basis of accounting.Waller Company's wages expense account had a $510, 000 balance at the end of the year.The wages payable account had a $23, 000 balance at the beginning of the year and a $45, 000 balance at the end of the year.How much cash was paid for wages during the year?

Question

Quizplus · Accepted Answer

The cash paid for wages is calculated by adjusting the wages expense for the change in wages payable: $510,000 (wages expense) + $23,000 (beginning wages payable) - $45,000 (ending wages payable) = $488,000.

The Waller Company Uses the Accrual Basis of Accounting