a. Reviewing payroll records indicates that one-fourth of employee salaries that are due to be paid on the first payday in January, totaling $16,000, are actually for hours worked in December. There was no previous balance in the Salaries Payable account at that time. Based on the information provided, make the December 31 adjusting journal entry to bring the balances to correct.

b. On July 1, a client paid an advance payment (retainer) of $10,000, to cover future legal services. During the period, the company completed 40% of the agreed-on services for the client. There was no beginning balance in the Unearned Revenue account for the period. Based on the information provided, make the journal entries needed to bring the balances to correct for:

1. original transaction

2. December 31 adjustment