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Ronald Rackets Corporation pays there employees on the 5th and 20th of every month. On December 31, 2012 Ronald Rackets recognized $30,000 of accrued wages expense for work performed by employees for the period beginning December 21, 2012 to the current date of December 31, 2012
Wage Expense $30,000 Wage Payable $30,000
On January 5th 2013 Ronald Rackets Employees were paid a total amount of $45,000 for the pay cycle ending January 5th 2013
Problem 1: Prepare the appropriate adjusting entry(s) that Ronald Rackets Corporation would make on January 5, 2013 to account for the cash payment made to employees.
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