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Question - 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.
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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