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Problem 1: Flagg records adjusting entries at its December 31st year-end. At December 31, employees had earned $14,800 of unpaid and unrecorded salaries. The next payday is January 3, at which time $37,000 will be paid. Prepare the journal entry on January 3 to record payment assuming the adjusting and reversing entries were made on December 31 and January 1.
a. Debit Salaries expense $14,800; debit Salaries payable $22,200; credit Cash $37,000b. Debit Salaries expense $37,000; credit Cash $37,000
c. Debit Salaries expense $22,200; credit Cash $22,200
d. Debit Salaries payable $37,000; credit Cash $37,000
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