The financial statements of Gregg Co.reported wages expense of $160,000 during Year 2,wages payable of $16,000 at the beginning of Year 2,and wages payable of $22,000 at the end of Year 2.What amount of cash was paid for wages during Year 2?

Question

Quizplus · Accepted Answer

Year 2:
Ending balance of wages payable of $22,000 = Beginning balance of wages payable of $16,000 + Increase due to wages expense of $160,000 ? Decrease due to payment of wages payable (the unknown)
Outflow for payment of wages = $16,000 + $160,000 ? $22,000 = $154,000

The Financial Statements of Gregg Co