Olsen Company paid or collected during 2014 the following items: The following balances have been excerpted from Olsen's balance sheets: Salaries and wages expense on the income statement for 2014 was
A) $214,600.
B) $257,000.
C) $263,800.
D) $306,200.

Question

Olsen Company paid or collected during 2014 the following items:  The following balances have been excerpted from Olsen's balance sheets:  Salaries and wages expense on the income statement for 2014 was
A) $214,600. 
B) $257,000. 
C) $263,800. 
D) $306,200.

Quizplus · Accepted Answer

To calculate the salaries and wages expense for 2014, we need to use the formula:

Salaries and Wages Expense = Salaries and Wages Payable at the end of the year - Salaries and Wages Payable at the beginning of the year + Salaries and Wages Paid/Colllected during the year

Using the balances from Olsen's balance sheets and the information provided in the question, we can calculate the salaries and wages expense as follows:

Salaries and Wages Expense = $94,200 - $11,600 + $181,200 = $263,800

Therefore, the correct answer is C, $263,800.

Olsen Company Paid or Collected During 2014 the Following Items