Barr Company's salaried employees are paid biweekly.Occasionally, advances made to employees are paid back by payroll deductions.Information relating to salaries for the calendar year 2007 is as follows: $\begin{array}{lcc}&12/21/06&12/31/07\ \hline
\text { Employee advances } & \$ 12,000 & \$ 18,000 \
\text { Accrued salaries payable } & 65,000 & ? \
\text { Salaries expense during the year } & & 650,000 \
\text { Salaries paid during the year (gross) } && 625,000
\end{array}$ At December 31, 2007, what amount should Barr report for accrued salaries payable?

Question

Barr Company's salaried employees are paid biweekly.Occasionally, advances made to employees are paid back by payroll deductions.Information relating to salaries for the calendar year 2007 is as follows: $\begin{array}{lcc}&12/21/06&12/31/07\  \hline
\text { Employee advances } & \$ 12,000 & \$ 18,000 \
\text { Accrued salaries payable } & 65,000 & ? \
\text { Salaries expense during the year } & & 650,000 \
\text { Salaries paid during the year (gross) } && 625,000
\end{array}$ At December 31, 2007, what amount should Barr report for accrued salaries payable?

Quizplus · Accepted Answer

Accrued salaries payable = Salaries expense during the year + Employee advances at 12/31/07 - Salaries paid during the year - Employee advances at 12/21/06= 650,000 + 18,000 - 625,000 - 12,000= $90,000

Barr Company's Salaried Employees Are Paid Biweekly At December 31, 2007, What Amount Should Barr Report for Employees