Wade Company reported wages expense of $32,000 during the year.The beginning balance in wages payable was $1,200,and at the end of the year,the balance in wages payable was $1,700.What was the amount of cash paid for employee wages during the year?
A) $29,100
B) $31,500
C) $34,400
D) $32,500

Question

Quizplus · Accepted Answer

To find the amount of cash paid for employee wages during the year, we need to subtract the change in wages payable from the wages expense and then add the beginning balance in wages payable.

Change in Wages Payable = Ending Balance - Beginning Balance 
Change in Wages Payable = $1,700 - $1,200 
Change in Wages Payable = $500

Cash Paid for Employee Wages = Wages Expense - Change in Wages Payable + Beginning Balance in Wages Payable 
Cash Paid for Employee Wages = $32,000 - $500 + $1,200 
Cash Paid for Employee Wages = $31,500

Therefore, the correct answer is B) $31,500.

Wade Company Reported Wages Expense of $32,000 During the Year