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On Friday of Each Week, Knife Company Pays Its Factory

Question 97

Essay

On Friday of each week, Knife Company pays its factory personnel weekly wages amounting to $48,000 for a five-day work week.
Instructions
(a) Prepare the necessary adjusting entry at year end, assuming December 31 falls on Thursday.
(b) How does the journal entry in (a) affect the adjusted trial balance?

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