The following balances have been excerpted from Edwards' balance sheets:

Edwards Company paid or collected during 2013 the following items:

The salary expense on the income statement for 2013 was
A)$366,500.
B)$472,500.
C)$489,500.
D)$595,500.

Question

The following balances have been excerpted from Edwards' balance sheets:

Edwards Company paid or collected during 2013 the following items:

The salary expense on the income statement for 2013 was
A)$366,500. 
B)$472,500. 
C)$489,500. 
D)$595,500.

Quizplus · Accepted Answer

To calculate the salary expense, we need to find the difference between the Salaries and Wages Payable balance at the end of 2012 ($103,000) and at the end of 2013 ($90,000), which is $13,000. Then, we add this to the Salaries and Wages Expense balance for the year ($476,500). Thus, the salary expense on the income statement for 2013 was $489,500 (Choice C).

The Following Balances Have Been Excerpted from Edwards' Balance Sheets