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END$-$OF$-$YEAR ACTIVITIES

On the financial statements prepared at the end of its first year of operations, the company must show an accurate picture of all expenses and all liabilities incurred. The last payday of the year was December $18.$ However, the payment to the employees on that day did not include the weeks ending December $19$ and $26$ and the four days $($December $28-31)$ in the following week. These earnings will be reflected in the January payrolls.

An adjusting entry as of December $31$ to record the salaries and wages that have accrued but remain unpaid as of the end of the year is prepared. When calculating the amount of the accrual for each hourly worker, assume each employee worked eight hours on each day during the period with no overtime $($student works a $36-$hour week$-$student worked $32$ hours for the period December $28$ through December $31).$ For each salaried worker, the accrual will amount to $\frac{14}{10}$ of the worker's biweekly earnings, except for Zimmerman who worked only $10$ days.

Each of the labor cost accounts are debited for the appropriate amount of the accrual, and Salaries and Wages Payable is credited for the total amount of the accrual. There is no liabitity for payroll taxes on the accrued salaries and wages until the workers are actually paid. Therefore, the company follows the practice of not accruing payroll taxes.

What is the amount of the credit to Salaries and Wages Payable for the December $31$ adjusting entry?