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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:

Monthly Deposits

Regular payments or contributions made into an account every month.

Quarterly Deposits

Deposits made into an account or investment at regular intervals every three months.

Compounded Semi-Annually

A method of calculating interest in which the accrued interest is added to the principal sum biannually, leading to "interest on interest."

Monthly Payments

Payments made once a month, often as part of a loan or rental agreement.

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