The Hurst Corporation pays its employees every Friday for the five-day week just ended. In January 2,

Question:

The Hurst Corporation pays its employees every Friday for the five-day week just ended. In January 2, 2013, the company paid its employees $70,000 for the week beginning Monday. December 29.

a. Assuming that the employees earned wages evenly throughout the week, prepare any adjusting journal entries that were necessary on December 31, 2012.

b. Prepare the journal entry that would be recorded on Friday, January 2, when the wages are paid.

c. Complete a chart like the following.

2012 2013 2014

Wage expense

Cash outflow associated with wages

d. What is the purpose of the adjusting journal entry on December 31?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...