Accounting Multiple Choice Practice Questions:

1. Concord Corporation pays all salaried employees on a biweekly basis. Overtime pay, however, is paid in the next biweekly period. Concord accrues salaries expense only at its December 31 year end. Data relating to salaries earned in December 2017 are as follows: Last payroll was paid on 12/26/17, for the 2-week period ended 12/26/17. Overtime pay earned in the 2-week period ended 12/26/17 was $24000. Remaining work days in 2017 were December 29, 30, 31, on which days there was no overtime. The recurring biweekly salaries total $443000. Assuming a five-day workweek, Concord should record a liability at December 31, 2017 for accrued salaries of:

A. $265,800

B. $156,900

C. $289,800

D. $132,900

2. The income statement of Sheffield Corp. for 2017 included the following items:

Interest Revenue: $137,000

Salaries and Wages Expense: $218,000

Insurance Expense: $23,100

The following balances have been excerpted from Sheffield Corp.'s balance sheets:

	December 31, 2017	December 31, 2016
Interest Recivable	$191,000	$15,400
Salaries and Wages Payable	$18,400	$9,000
Prepaid Insurance	$2,300	$2,850

The cash paid for insurance premium during 2017 was:

A. $22,550

B. $20,250

C. $23,650

D. $20,800