As of Dec. 31, 2016, accrued salaries are $4,000 and accrued labor wages are $9,000. Dont forget added employer paid tax for FICA and Medicare and as 10% income tax withholding. Rather than creating new accrual accounts, you may use the usual payroll and tax payable accounts. This will not create a problem since this entry will be reversed on January 1, 2017. Remember to round up payroll taxes to the nearest dollar.

What is the adjusting entry