S Corp. follows a 5-day (Monday-Friday) work-week. It pays its salaried employees on a bi-weekly basis every other Friday.  Overtime pay, however, is paid in the next biweekly period.  S Corp. accrued salaries expenses only at its June 30 fiscal year.  Data relating to salaries earned in June 20x1 were as follows: Last payroll was paid on June 24, 20x1 for the two-week period June 24, 20x1 Overtime pay earned in the two-week period ended June 24, 20x1 was P 63,000. The recurring biweekly salaries total P 720,000 In the remaining workdays of June, overtime pay earned amounted to P 18,000. How much is Pink Corp.’s accrued salaries on June 30, 20x1? A. P 288,000   P 297,000             C.  P 351,000            D.  P 369,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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S Corp. follows a 5-day (Monday-Friday) work-week. It pays its salaried employees on a bi-weekly basis every other Friday.  Overtime pay, however, is paid in the next biweekly period.  S Corp. accrued salaries expenses only at its June 30 fiscal year.  Data relating to salaries earned in June 20x1 were as follows:

  • Last payroll was paid on June 24, 20x1 for the two-week period June 24, 20x1
  • Overtime pay earned in the two-week period ended June 24, 20x1 was P 63,000.
  • The recurring biweekly salaries total P 720,000
  • In the remaining workdays of June, overtime pay earned amounted to P 18,000.

How much is Pink Corp.’s accrued salaries on June 30, 20x1?

A. P 288,000   P 297,000             C.  P 351,000            D.  P 369,000

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