Account for salaries expense. (LO 1, 2)

Jack's Finance \& Budget Consulting Inc. pays all salaried employees monthly on the first Monday following the end of the month. Overtime, however, is recorded as comp time for all employees. Jack's allows employees to exchange all comp time not used during the year for pay on June 30 and pays it on July 15. Jack's accrues salary expense only at its June 30 year-end. Information about salaries earned in June 2008 is as follows:

- Last payroll was paid on June 2, 2008, for the month ended May 31, 2008.

- Comp pay exchanged at year-end totals \(\$ 150,000\).

- The regular yearly salaries total \(\$ 1,500,000\).

Using a 12-month fiscal work year, what will Jack's Finance \& Budget Consulting Inc.'s balance sheet show as salaries payable on June 30, 2008?