Wages expense in the income statement is $58,250 with the statement of financial position at the end of the year showing accrued wages of $2,000. If there were no accrued wages at the beginning of the period, how much was paid out in cash for wages during the year?

Question

Quizplus · Accepted Answer

Wages expense = Cash paid for wages + Accrued wages at end - Accrued wages at beginning
$58,250 = Cash paid for wages + $2,000 - $0
Cash paid for wages = $58,250 - $2,000 = $56,250. Therefore, the answer is B.

Wages Expense in the Income Statement Is $58,250 with the Statement