Colaw Co.pays all salaried employees on a biweekly basis.Overtime pay, however, is paid in the next biweekly period.Colaw accrues salaries expense only at its December 31 year end.Data relating to salaries earned in December 2007 are as follows:

Last payroll was paid on 12/26/07, for the 2-week period ended 12/26/07.
Overtime pay earned in the 2-week period ended 12/26/07 was $10,000.
Remaining work days in 2007 were December 29, 30, 31, on which days there was no overtime.
The recurring biweekly salaries total $180,000.

Assuming a five-day work week, Colaw should record a liability at December 31, 2007 for accrued salaries of
A)$54,000.
B)$64,000.
C)$108,000.
D)$118,000.

Question

Colaw Co.pays all salaried employees on a biweekly basis.Overtime pay, however, is paid in the next biweekly period.Colaw accrues salaries expense only at its December 31 year end.Data relating to salaries earned in December 2007 are as follows:

Last payroll was paid on 12/26/07, for the 2-week period ended 12/26/07.
Overtime pay earned in the 2-week period ended 12/26/07 was $10,000.
Remaining work days in 2007 were December 29, 30, 31, on which days there was no overtime. 
The recurring biweekly salaries total $180,000.

Assuming a five-day work week, Colaw should record a liability at December 31, 2007 for accrued salaries of
A)$54,000.
B)$64,000.
C)$108,000.
D)$118,000.

Quizplus · Accepted Answer

The Answer of Colaw Co.pays all salaried employees on a biweekly basis.Overtime pay, however, is paid in the next biweekly period.Colaw accrues salaries expense only at its December 31 year end.Data relating to salaries earned in December 2007 are as follows:

Last payroll was paid on 12/26/07, for the 2-week period ended 12/26/07.
Overtime pay earned in the 2-week period ended 12/26/07 was $10,000.
Remaining work days in 2007 were December 29, 30, 31, on which days there was no overtime. 
The recurring biweekly salaries total $180,000.

Assuming a five-day work week, Colaw should record a liability at December 31, 2007 for accrued salaries of
A)$54,000.
B)$64,000.
C)$108,000.
D)$118,000.

Colaw CoPays All Salaried Employees on a Biweekly Basis