Eagle Company reported Salaries and Wages Payable of $1,500 at the beginning of the year and $5,000 at the end of the year. The

Question

3 years ago

11

income statement for the year reported Salaries and Wages Expense of $112,400. How much cash was paid for salaries and wages during the year?

1 answer:

sergejj [24] · Answer 1 · 2022-01-07T15:22:10+03:00

Given:

Wages payable at the beginning of the year = $1500

Wages payable at the end of the year = $5000

Salaries and wages expense as per the income statement = $112400

To find:

Cash paid for salaries and wages

Solution:

The calculation of the cash paid for salaries and wages is as follows,

Wages payable at the end of the year-Wages payable at the beginning of the year = $\$5000-\$1500=\$3500$

Cash paid = $\$112400-\$3500=\$1,08,900$

Therefore, the cash paid for salaries and wages during the year is $1,08,900.

Wages and salaries are paid by the organization or management to the workers or the employees in return for the work done by them for the company.