Answer:
Following adjusting journal entry is made on December 31, Year 1.
Dr. Cr.
Salaries and Wages Expense $50,300
Salaries and Wages accrued Payable $50,300
Explanation:
Assuming there is 5 working days in the week and company pay for these only.
Per week Payment = $125,750
per day payment = 125750 / 5 = $25,150
Days Lies in Year 2 = January 3, Year 2 - December 31, Year 1 = 3 days
Days Lies in Year 1 = 5 - 3 = 2 days
Salaries and Wages accrued on December 31, Year 1 = $25,150 x 2
Salaries and Wages accrued on December 31, Year 1 = $50,300
