Lewis 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 2016 is as follows: 12/31/15 12/31/16 Employee advances Accrued salaries payable $12,000 $ 18,000 75,000 ? Salaries expense during the year 650,000 Salaries paid during the year (gross) 625,000 At December 31, 2016, what amount should Lewis report for accrued salaries payable? a. $100,000. b. $84,000. c. $92,000. d. $55,000.
Lewis 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 2016 is as follows: 12/31/15 12/31/16 Employee advances Accrued salaries payable $12,000 $ 18,000 75,000 ? Salaries expense during the year 650,000 Salaries paid during the year (gross) 625,000 At December 31, 2016, what amount should Lewis report for accrued salaries payable? a. $100,000. b. $84,000. c. $92,000. d. $55,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Lewis 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 2016 is as
follows:
12/31/15
12/31/16
Employee advances
Accrued salaries payable
$12,000
$ 18,000
75,000
?
Salaries expense during the year
650,000
Salaries paid during the year (gross)
625,000
At December 31, 2016, what amount should Lewis report for accrued salaries payable?
a. $100,000.
b. $84,000.
c. $92,000.
d. $55,000.
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