Use the following information to calculate cash paid for wages and salaries: $$\begin{array} { | l | r | }
\hline \text { Salaries expense } & \$ 168,000 \
\hline \text { Salaries payable, January 1 } & 6,400 \
\hline \text { Salaries payable, December } 31 & 10,600 \
\hline
\end{array}$$
A) $157,400.
B) $163,800.
C) $168,000.
D) $172,200.
E) $174,400.

Question

Use the following information to calculate cash paid for wages and salaries: $$\begin{array} { | l | r | } 
\hline \text { Salaries expense } & \$ 168,000 \
\hline \text { Salaries payable, January 1 } & 6,400 \
\hline \text { Salaries payable, December } 31 & 10,600 \
\hline
\end{array}$$
A) $157,400.
B) $163,800.
C) $168,000.
D) $172,200.
E) $174,400.

Quizplus · Accepted Answer

To calculate cash paid for wages and salaries, we need to take into account the salaries expense for the year, any salaries payable from the previous year that were paid during the current year, and any salaries payable at the end of the current year that will be paid in the following year. 
Cash paid for wages and salaries = Salaries expense + Salaries payable, January 1 - Salaries payable, December 31
Cash paid for wages and salaries = $168,000 + $6,400 - $10,600
Cash paid for wages and salaries = $163,800

Use the Following Information to Calculate Cash Paid for Wages