The income statement for Year 2 of Winter Co.reported wages expense of $160,000.At December 31,Year 1,the balance sheet showed a balance in wages payable of $16,000.At December 31,Year 2,the balance sheet showed a balance in wages payable of $22,000.What amount of cash was paid for wages during the year?
A) $176,000
B) $166,000
C) $154,000
D) $144,000

Question

Quizplus · Accepted Answer

$154,000. To calculate the cash paid for wages, start with the wages expense of $160,000, add the decrease in wages payable (Year 1's $16,000 - Year 2's $22,000 = -$6,000), resulting in $154,000 ($160,000 - $6,000).

The Income Statement for Year 2 of Winter Co