Account for salaries expense. (LO 1, 2)

Royal Company pays all salaried employees biweekly. Overtime pay, however, is paid in the next biweekly period. Royal accrues salary expense only at its December 31 year-end. Information about salaries earned in December 2007 is as follows:

- Last payroll was paid on December 26, 2007, for the 2-week period ended December 26, 2007.
- Overtime pay earned in the 2-week period ended December 26,2007 was \(\$ 5,000\).
- Remaining workdays in 2007 were December 29, 30, 31; no overtime was worked on these days.
- The regular biweekly salaries total \(\$ 90,000\).
Using a 5-day workweek, what will Royal Company's balance sheet show as salaries payable on December 31, 2007?