Use the following information to answer questions 9 and 10:

• On 12/31/2014, ABC, Inc. determined that it owed its employees $5k for work they did during the final two weeks of 2014 but they will not be paid until 1/14/2015.
• On 1/14/2015, ABC, Inc. paid its employees $10k for the four-week pay period (last two weeks of December, first two weeks of January).

1. What journal entry was recorded by ABC, Inc. on 12/31/2014?

A. Debit Cash $5k; Credit Salaries Payable $5k

B. Debit Salaries Payable $5k; Credit Salaries Expense $5k

C. Debit Salaries Expense $5k; Credit Salaries Payable $5k

D. Debit Salaries Expense $5k; Credit Cash $5k

2. What journal entry was recorded by ABC, Inc. on 1/14/2015 (the following accounting period)?

A. Debit Salaries Expense $5k; Debit Salaries Payable $5k; Credit Cash $10k

B. Debit Salaries Expense $10k; Credit Cash $10k

C. Credit Salaries Expense $5k; Credit Salaries Payable $5k; Debit Cash $10k

D. None of the above