Calculation of wages paid to employees.
The following balance sheets are provided for Victor Foods
|
Cash and cash equivalents ..............................
|
$170,000
|
$120,000
|
|
Accounts receivable ...................................
|
80,000
|
65,000
|
|
Inventory ................................
|
140,000
|
130,000
|
|
Plant and equipment (net) ............................
|
130,000
|
80,000
|
|
Total assets ........................................
|
$520,000
|
$395,000
|
|
Accounts payable (for merchandise) ...............
|
$ 65,000
|
$ 35,000
|
|
Wages payable ............................................
|
120,000
|
110,000
|
|
Long-term liabilities .....................................
|
95,000
|
70,000
|
|
Common stock ..........................................
|
100,000
|
100,000
|
|
Retained earnings ............................................
|
140,000
|
80,000
|
|
Total liabilities and owner equity ..................
|
$520,000
|
$395,000
|
Selected information from Victor Foods current year income statement:
|
Sales ...........................................................................
|
$1,650,000
|
|
Cost of goods sold ...................................................
|
840,000
|
|
Wages expense .........................................................
|
260,000
|
Compute the following (and show your work to earn partial credit in the event your responses are incorrect):
Wages paid to employees during the year ........................................ $ _____________
Indicate the best answer to each question in the space provided.