T Ltd paid $240 000 in wages during the year.The opening balance of Accrued Wages was $8000 and the closing balance was $10 000.What was the wages expense for the year?

Question

Quizplus · Accepted Answer

Wages expense for the year can be calculated by subtracting the opening balance of Accrued Wages from the sum of wages paid and the closing balance of Accrued Wages.

Wages expense = Wages paid + Closing Accrued Wages balance - Opening Accrued Wages balance 
Wages expense = $240 000 + $10 000 - $8 000 
Wages expense = $242 000

Therefore, the correct choice is C, $242 000.

T Ltd Paid $240 000 in Wages During the Year