Salaries payable was $800 and Salaries expense was 1,500 at the end of January 31,2008 and if $2500 of salaries was paid in January, what was the balance in Salaries Payable at December 31,2007 . Their fiscal year end is December 31. Please show me how to calculate this. Thank you

Whatever was paid in 2007 is your answer. Anything paid after January 1, 2008 goes into 2008. It has nothing to do with their fiscal year. The government goes from Jan 1 to Dec 31 and that is what you go by. If you earned the money in 2007 and were not actually paid until 2008 the money goes toward 2008.