The company pays its employees each Monday for the work performed during the preceding 5-day work week. Total payroll for one week is $25,000. December 31 fell on a Wednesday.
(1) Make the journal entry necessary to record wages payable as of December 31.
(2) Make the journal entry necessary on the following January 5 to record payment of wages for the preceding week. Assume that this is a very strict company and that there were no holidays during the week.