Penman Corporation showed Salaries and Wages Expense of $488,000 on its income statement.If the Salaries and Wages Payable account was $54,000 at the beginning of the year and $37,000 at the end of the year,how much cash was paid to employees?
A) $434,000
B) $451,000
C) $505,000
D) $471,000

Question

Quizplus · Accepted Answer

The cash paid to employees is calculated as: Salaries and Wages Expense + Beginning Salaries and Wages Payable - Ending Salaries and Wages Payable = $488,000 + $54,000 - $37,000 = $505,000.

Penman Corporation Showed Salaries and Wages Expense of $488,000 on Its