Question

A company reported annual wages expense of $348,000 and insurance expense of $42,000. During the year, wages payable decreased from an $18,000 beginning balance to a $13,200 ending balance, and prepaid insurance decreased from a $90,000 beginning balance to a $54,000 ending balance. How much cash was paid to employees as wages and paid for insurance during the year? A. $348,000 for wages and $42,000 for insurance B. $343,200 for wages and $6,000 for insurance C. $352,800 for wages and $6,000 for insurance D. $352,800 for wages and $78,000 for insurance E. None of the above

Answer 1

Answer:

The correct answer is D.

Explanation:

Giving the following information:

A company reported annual wages expense of $348,000 and insurance expense of $42,000. During the year, wages payable decreased from an $18,000 beginning balance to a $13,200 ending balance, and prepaid insurance decreased from a $90,000 beginning balance to a $54,000 ending balance.

Wages= 348,000 + 18,000 - 13,200= 352,800

Insurance= 42,000 + 90,000 - 54,000= 78,000