se only at its December 31 year-end. Data relating to salaries earned on December 2021 are as follows: A. Last payroll was paid on December 26, 2021for the 2-week period ended December 26, 2021. B. Overtime pay earned in the 2-week period ended December 26, 2021 was P5,000. C. Remaining work days in 2021 were December 29, 30, 31, on which days there was no overtime. D. The recurring biweekly salaries total P90,000
se only at its December 31 year-end. Data relating to salaries earned on December 2021 are as follows: A. Last payroll was paid on December 26, 2021for the 2-week period ended December 26, 2021. B. Overtime pay earned in the 2-week period ended December 26, 2021 was P5,000. C. Remaining work days in 2021 were December 29, 30, 31, on which days there was no overtime. D. The recurring biweekly salaries total P90,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Drew Company pays all salaried employees on a biweekly basis. Overtime pay, however, is paid in the next biweekly period. Drew accrues salaries expense only at its December 31 year-end. Data relating to salaries earned on December 2021 are as follows:
A. Last payroll was paid on December 26, 2021for the 2-week period ended December 26, 2021.
B. Overtime pay earned in the 2-week period ended December 26, 2021 was P5,000.
C. Remaining work days in 2021 were December 29, 30, 31, on which days there was no overtime.
D. The recurring biweekly salaries total P90,000
A. Last payroll was paid on December 26, 2021for the 2-week period ended December 26, 2021.
B. Overtime pay earned in the 2-week period ended December 26, 2021 was P5,000.
C. Remaining work days in 2021 were December 29, 30, 31, on which days there was no overtime.
D. The recurring biweekly salaries total P90,000
a. Assuming a five-day work week, D should record a liability at year end for accrued salaries:
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