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Ellis Service Company Had the Following Unadjusted Balances at December

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Ellis Service Company had the following unadjusted balances at December 31,2016: Salaries Payable,$0;Salaries Expense,$12,000.The following transactions took place on December 31,2016:
Accrued Salaries Expense,$5,000
Closed the Salaries Expense account.
The following transaction took place on January 4,2017:
Paid salaries of $6,000.This payment included $5,000 that was accrued on December 31,2016 and $1,000 for the first few days in January 2017.
Prepare the journal entry for January 4,2017,assuming that reversing entries were not made.


Definitions:

Direct Labor Cost

The total cost of all labor that is directly involved in the production of goods or services.

Manufacturing Overhead

The indirect factory-related costs that are incurred when producing a product.

Total Manufacturing Costs

The sum of all expenses directly associated with the production of goods, including direct labor, direct materials, and manufacturing overhead.

Predetermined Overhead Rate

Predetermined Overhead Rate is a rate calculated before a period begins, used to allocate estimated overhead costs to products or job orders based on a selected activity base.

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