pel Progress At December 31, 2021, Sheridan Company made an accrued expense adjusting entry of $1,870 for salaries. On January 4 2022, it paid salaries of $3,140: $1,870 for December salaries and $1,270 for January salaries. port Your answer is correct. Prepare the December 31 adjusting entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Salaries Expenses 31 1870 Salaries Payable 1870 (To accrue salaries at year-end) Prepare the December 31 closing entry for salaries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 Income Summary 1870 Salaries Expense 1870 (Closing entry) e January 1 reversing entry and the January 4 journal entry to record the payment of salaries. (Credit account ties un automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1 Salaries Payable 1870 1870 Salaries Expense (To reverse Dec. 31 accrual) Jan. Salaries Expense 3140 3140 Cash (To record Jan. 4 payment of salary) Indicate the balances in Salaries Payable and Salaries Expense after posting these entries. Salaries Expense e Explanation Ref Debit Credit Balance Dec. Accrual 31 Closing entry Jan. Reversing 1 entry Payment of salary Salaries Payable Jate Explanation Ref Debit Credit Balance Dec. 31 Accrual Jan. Reversing 1 entry