The Walker Company uses the accrual basis of accounting. Walker Company's wages expense account had a $610,000 balance at the end of the year. The wages payable account had a $23,000 balance at the beginning of the year and a $45,000 balance at the end of the year. How much cash was paid for wages during the year?

Question

Quizplus · Accepted Answer

The cash paid for wages is calculated as: Wages Expense - (Ending Wages Payable - Beginning Wages Payable) = $610,000 - ($45,000 - $23,000) = $610,000 - $22,000 = $588,000.

The Walker Company Uses the Accrual Basis of Accounting