Matrix Accounting pays all salaried employees biweekly. Overtime pay, however, is paid in the next biweekly period. Matrix accrues salary expense only at its December 31 year end. Information about salaries earned in
December 2009 is as follows:
- Last payroll was paid on December 28, 2009, for the two-week period ended December 28, 2009.
- Overtime pay earned in the two-week period ended December 28, 2009, was $7,500.
- Remaining workdays in 2009 were December 29, 30, 31; no overtime was worked on these days.
- The regular biweekly salaries total $125,000.
Using a five-day workweek, what will Matrix's balance sheet show as salaries payable on December 31, 2009.