During the year, Salaries and Wages Payable decreased by ¥60,000. If Salaries and Wages Expense amounted to ¥1,900,000 for the year, the cash paid to employees (including deductions from gross pay) is

Question

Quizplus · Accepted Answer

The decrease in Salaries and Wages Payable indicates that more cash was paid than the expense recognized. Therefore, cash paid = Salaries and Wages Expense + Decrease in Payable = ¥1,900,000 + ¥60,000 = ¥1,960,000.

During the Year, Salaries and Wages Payable Decreased by ¥60,000