The financial statements of Gregg Co.reported wages expense of $160,000 during Year 2,wages payable of $16,000 at the end of Year 1,and wages payable of $22,000 at the end of Year 2.What amount of cash was paid for wages during Year 2?
A)$176,000
B)$160,000
C)$154,000
D)$144,000

Question

Quizplus · Accepted Answer

Year 2:
Ending balance of wages payable of $22,000 = Beginning balance of wages payable of $16,000 + Increase due to wages expense of $160,000 - Decrease due to payment of wages payable (the unknown)
Outflow for payment of wages = $16,000 + $160,000 - $22,000 = $154,000

The Financial Statements of Gregg Co