Use the following information to calculate cash paid for wages and salaries: $\begin{array}{|l|r|}
\hline \text { Salaries expense } & \$ 168,000 \
\hline \text { Salaries payable, January } 1 & 6,400 \
\hline \text { Salaries payable, December } 31 & 10,600 \
\hline
\end{array}$
A)$157,400
B)$163,800
C)$168,000
D)$172,200
E)$174,400

Question

Quizplus · Accepted Answer

To calculate cash paid for wages and salaries, we need to start with the Salaries Expense for the year and adjust for the Salaries Payable at the beginning and end of the year. The formula is: 
Cash paid for wages and salaries = Salaries Expense + Salaries Payable at the beginning of the year - Salaries Payable at the end of the year 
Substituting the values given, we get: 
Cash paid for wages and salaries = $168,000 + $6,400 - $10,600 = $163,800 
Therefore, the best choice is B.

Use the Following Information to Calculate Cash Paid for Wages