question archive Chippy Company's salaried employees are paid biweekly

Chippy Company's salaried employees are paid biweekly

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Chippy 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 2015 is as follows:                                               12/31/14                               12/31/15

Employee advances                             P12,000                           P 18,000

Accrued salaries payable                          65,000                                 ?

Salaries expense during the year                                                    650,000

Salaries paid during the year {gross}                                              625,000

At December 31, 2015, what amount should Chippy report for accrued salaries payable?

a. P90,000.

b. P84,000.

c. P72,000.

d. P25,000.

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Answer:

C, P 72,000 

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