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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?


Definitions:

Prohibition

The act of formally forbidding something by law, such as the historical ban on the production and sale of alcoholic beverages in the United States from 1920 to 1933.

Immigration

The act of moving to a country that is not one's native country with the intention to settle there.

Immigration Quotas

A system that sets limits on the number of immigrants allowed to enter a country.

Immigration Act of 1924

A United States federal law that restricted immigration by establishing quotas based on nationality.

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