Question

Olsen Company paid or collected during 2014 the following items: Insurance premiums paid $ 25,800 Interest collected 62,800 Salaries and wages paid 260,400 The following balances have been excerpted from Olsen's balance sheets: December 31, 2014 December 31, 2013 Prepaid insurance $ 2,400 $ 3,000 Interest receivable 7,400 5,800 Salaries and wages payable 24,600 21,200 Salaries and wages expense on the income statement for 2014 was _______.

Answer 1

Salaries and wages expenses on the income statement for 2014 was $263,800.

Step-by-step explanation:

given information to us here is that -

TOTAL SALARIES AND WAGES COLLECTED = $260,400

SALARIES AND WAGES PAYABLE FOR YEAR 2014 = $24,600

SALARIES AND WAGES PAYABLE FOR YEAR 2013 = $21,200

FOR CALCULATING THE SALARIES AND WAGES EXPENSES FOR 2014 =

TOTAL SALARIES AND WAGES COLLECTED

+

SALARIES AND WAGES PAYABLE FOR YEAR 2014

-

SALARIES AND WAGES PAYABLE FOR YEAR 2013

= $260,400 + $24,600 - $21,200

= $263,800

Answer 2

Salaries and wages expense on the income statement for 2014 was $263,800.

Step-by-step explanation:

Provided details of salary expense

Outstanding on December 2013 = $21,200

Outstanding on December 2014 = $24,600

Paid in current year = $260,400

Outstanding at previous year end means that it was paid in current year, that is $260,400 - $21,200 = Current year expense paid in current year = $239,200.

Outstanding at current year end means expense of current year no paid, that is current year expense = $239,200 + $24,600 = $263,800.

Salaries and wages expense on the income statement for 2014 was $263,800.