Waterway Company's weekly payroll, paid on Fridays, totals $7,540. Employees work a 5-day week. Prepare Waterway's adjusting entry on Wednesday, December 31, and the journal entry to record the $7,540 cash payment on Friday, January 2. (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. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit