Question

Suppose that during the first year of business $100,000 of wage costs were incurred; $90,000 were paid in cash to employees; and the remaining wages will be paid to employees on January 3 of the coming year, the next payday. What account title and amount will be reported on the following year end financial statements

Answer 1

Answer and Explanation:

The wages expense of $100,000 should be reported on the debit side of the balance sheet, the $90,000 should be shown in the cash flow statement and the remaining balance i.e. $10,000 would be shown as the wages payable as the current obligations on the liabilities side of the balance sheet

So the above represent the title of an account and the amount