It is the end of December. During the month of December, the employees of Company X earned 50,000 in salaries. Paychecks don't go out until next Friday, which is in the new year and the new accounting cycle. Which of the following are correct regarding the adjusting entry at the end of December? a liability should be credited there is an adjusting entry required at the end of December this transaction involves cash payments this is an example of an deferred expense