Question

The 2016 income statement of Gregg Co. reported wages expense of $348,000; the 2015 balance sheet showed a balance in wages payable of $43,200, while the 2016 balance sheet included wages payable of $59,400. What amount of cash was paid for wages in 2016?

$348,000.

$331,800.

$391,200.

$304,800.

Answer 1

	Wages Payable
	Cash(B.F)	$ 331,800	Op. Balance	$                  43,200
			Wages expense	$                348,000
	Cl Balance	$    59,400
	Wages paid in cash:
=	Opening Balance in Wages payable(+)Wages expense(-)Closing Balance in Wages Payable
=	43,200+348,000-59,400
=	$                             331,800