The Hurst Corporation pays its employees every Friday for the five-day week just ended. On January 2, 2018, the company paid its employees $70,000 for the week beginning Monday, December 29.
a. Assuming that the employees earned salaries and wages evenly throughout the week, prepare any adjusting journal entries that were necessary on the closing date of December 31, 2017.
b. Prepare the journal entry that would be recorded on Friday, January 2, when the wages are paid.
c. Complete a chart like the following.

d. What is the purpose of the adjusting journal entry on December 31?

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Total 2017 2018 Salaries and wages expense Cash outflow associated with wages