The wages payable account showed an opening balance of $27 000 and a closing balance of $42 000.Wages expense was $590 000.What was the cash payment for wages?
A) $575 000
B) $590 000
C) $605 000
D) $632 000

Question

Quizplus · Accepted Answer

The cash payment for wages can be calculated as follows:
Cash payment = Wages Expense - Increase in Wages Payable
Increase in Wages Payable = Closing Balance - Opening Balance
Increase in Wages Payable = $42 000 - $27 000 = $15 000
Cash payment = $590 000 - $15 000 = $575 000
Therefore, the correct answer is A) $575 000.

The Wages Payable Account Showed an Opening Balance of $27