Matrix Accounting pays all salaried employees biweekly. Overtime pay, however, is paid in the next biweekly period.

Question:

Matrix Accounting pays all salaried employees biweekly. Overtime pay, however, is paid in the next biweekly period. Matrix accrues salary expense only at its December 31 year end. Information about salaries earned in December 2009 is as follows:
• Last payroll was paid on December 28, 2009, for the two-week period ended December 28, 2009.
• Overtime pay earned in the two-week period ended December 28, 2009, was $7,500.
• Remaining workdays in 2009 were December 29, 30, 31; no overtime was worked on these days.
• The regular biweekly salaries total $125,000.
Using a five-day workweek, what will Matrix’s show as salaries payable on December 31, 2009?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...