The 2014 income statement for Year 2 of Winter Co.reported wages expense of $160,000.The At December 31,2013,Year 1,the balance sheet showed a balance in wages payableWages Payable of $16,000.At while the December 31,2014,Year 2,the balance sheet showed a balance in wages payableWages Payable of $22,000.What amount of cash was paid for wages in 2014during the year?
A) $176,000
B) $166,000
C) $154,000
D) $144,000

Question

Quizplus · Accepted Answer

Beginning balance of Wages Payable + Expenses incurred on account - Cash outflow for expenses = Ending balance of Wages Payable
$16,000 + $160,000 - Cash outflow for expenses = $22,000
Cash outflow for expenses = $16,000 + $160,000 - $22,000 = $154,000

The 2014 Income Statement for Year 2 of Winter Co