A company incurred $5,000 in salaries and wages for employees for the year; $4,5

Question

A company incurred $5,000 in salaries and wages for employees for the year; $4,500 of these salaries and wages had been paid by the end of the year. Which of the following statements about this situation is correct?

Salaries and Wages Expense on the income statement will be $500.

Salaries and Wages Expense on the balance sheet will be $5,000.

Salaries and Wages Payable on the balance sheet will be $500.

Salaries and Wages Payable on the income statement will be $4,500.

Salaries and Wages Expense on the income statement will be $500.

Salaries and Wages Expense on the balance sheet will be $5,000.

Salaries and Wages Payable on the balance sheet will be $500.

Salaries and Wages Payable on the income statement will be $4,500.

Explanation / Answer

on this transaction salary and wages expense shown in income statement is $5000 and salary and wages payable in balance sheet is (5000-4500) = $500.

So answer is c) Salaries and Wages Payable on the balance sheet will be $500.

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