The financial statements of Gregg Company reported wages expense of $388,000 during Year 2, wages payable of $59,200 at the beginning of Year 2, and wages payable of $81,400 at the end of Year 2. What amount of cash was paid for wages during Year 2?

Question

Quizplus · Accepted Answer

The amount paid for wages during Year 2 can be calculated as follows:
Cash paid for wages = Wages expense - wages payable at the end of the year + wages payable at the beginning of the year
Cash paid for wages = $388,000 - $81,400 + $59,200
Cash paid for wages = $365,800. Therefore, the correct answer is D, $365,800.

The Financial Statements of Gregg Company Reported Wages Expense of $388,000