Walker Company uses the accrual basis of accounting. Walker Company's wages expense account had a $610,000 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?
A) $588,000
B) $610,000
C) $632,000
D) $555,000

Question

Quizplus · Accepted Answer

To find the cash paid for wages, adjust the wages expense by the change in wages payable: $610,000 (wages expense) - ($45,000 - $23,000) (increase in wages payable) = $588,000.

Walker Company Uses the Accrual Basis of Accounting