During July, wage expense of $27,000 was reported on the income statement of a company. If wages payable on July 1st was $2,000, and wages of $20,000 were paid during July, how much was accrued wages payable on July 31st?

Question

Quizplus · Accepted Answer

The wages payable at the end of July can be calculated by adding the wage expense for July to the beginning wages payable and then subtracting the wages paid during July. So, $27,000 (wage expense) + $2,000 (beginning wages payable) - $20,000 (wages paid) = $9,000.

During July, Wage Expense of $27,000 Was Reported on the Income