Question

Yoshi Group reported in its reconciliation of net income to cash flow from operations a decrease in wages and salaries payable of ¥21 million during the year. It provided data showing that cash payments for wages and salaries to employees for the year were ¥8,853 million. Compute the amount of Yoshi Group’s wages and salaries expense for the year.

Answer 1

¥8,874 million

Step-by-step explanation:

In this question, we apply the accrual basis of accounting which means whether cash received or not, the transaction should be recorded.

The computation of the amount of Yoshi Group’s wages and salaries expense for the year is shown below:

= Cash payments for wages and salaries to employees for the year + decrease in wages and salaries payable

= ¥8,853 million + ¥21 million

= ¥8,874 million

Hence, we recognized both the items as it follows the accrual concept