Eagle Company reported Salaries and Wages Payable of $1,500 at the beginning of the year and $5,000 at the end of the year.The income statement for the year reported Salaries and Wages Expense of $112,400.How much cash was paid for salaries and wages during the year?

Question

Quizplus · Accepted Answer

Ending Salaries and Wages Payable = Beginning Salaries and Wages Payable + Salaries and Wages Expense during the year − Salaries and wages paid during the year
Salaries and wages paid during the year = Beginning Salaries and Wages Payable + Salaries and Wages Expense during the year − Ending Salaries and Wages Payable
= $1,500 + $112,400 − $5,000 = $108,900

Eagle Company Reported Salaries and Wages Payable of $1,500 at the Beginning