Thomas and associates a law firm accrued 4000 for four days...

Thomas and Associates, a law firm, accrued $4,000 for four days of wages on December 31. On January 7, it paid two weeks of wages, totaling $10,000, to employees. The company's fiscal year-end is December 31. Prepare the journal entries for the accrued wages on December 31, the reversing entry at the beginning of the new fiscal year, and the payment on January 7. Omit explanations.

Wages of $8,000 are earned by workers but not paid as of December 31. Depreciation on the company’s equipment for the year is $10,480. The Office Supplies account had a $470 debit balance at the beginning of the year. During the year, $5,063 of office supplies are purchased. A physical count of supplies at December 31 shows $556 of supplies available. A. The Prepaid Insurance account had a $5,000 balance at the beginning of the year. An analysis of insurance policies shows that $1,600 of unexpired insurance benefits remain at December 31. B. The company has earned (but not recorded) $650 of interest revenue for the year ended December 31. The interest payment will be received 10 days after the year-end on January 10. C. The company has a bank loan and has incurred (but not recorded) interest expense of $2,500 for the year ended December 31. The company will pay the interest five days after the year-end on January 5.

Jennifer S.

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