Ace Electronics paid $4,000 of the $5,000 its employees had earned during the period.Ace Electronics should report Salaries and Wages Expense of ______ on the income statement,Salaries and Wages Payable of ______ on the balance sheet,and a reduction in Cash of ______.

Question

Quizplus · Accepted Answer

Ace Electronics should report the total Salaries and Wages Expense of $5,000 on the income statement, as this is the total amount earned by employees. The Salaries and Wages Payable on the balance sheet would be $1,000, which is the unpaid portion. The reduction in Cash would be $4,000, which is the amount actually paid.

Ace Electronics Paid $4,000 of the $5,000 Its Employees Had