Exercise 8-40 Accrued Wages and Payment of Payroll

GCD Advisors offices are open Monday through Friday and GCD pays employees salaries of $50,000 every other Friday. During the current year December 31 falls on a Thursday and the next payday is January 8.

Given this information, determine the adjusting journal entry that GCD must make on December 31 as well as the journal entry to record the payment of the payroll on January 8. If an amount box does not require an entry, leave it either blank or enter "0".

Dec. 31

(Record accrued wages)

Jan. 8

(Record payment of wages)