Given:
Wages payable at the beginning of the year = $1500
Wages payable at the end of the year = $5000
Salaries and wages expense as per the income statement = $112400
To find:
Cash paid for salaries and wages
Solution:
The calculation of the cash paid for salaries and wages is as follows,
Wages payable at the end of the year-Wages payable at the beginning of the year = [tex]\$5000-\$1500=\$3500[/tex]
Cash paid = [tex]\$112400-\$3500=\$1,08,900[/tex]
Therefore, the cash paid for salaries and wages during the year is $1,08,900.
Wages and salaries are paid by the organization or management to the workers or the employees in return for the work done by them for the company.
