Yara Clothing (Yara), a retail store at the mall, hires a number of employees to work 7 days a week. Yara owes its employees wages for the period of December 27, 2020 to January 9, 2021 (14 days) for $5,600. The wages owed are equal each day and the employees will be paid on January 11, 2021. Yara prepares annual financial statements and has a December 31 year-end.
a. How much does Yara owe its employees per day?
b. How many days are between December 27, 2020 and December 31, 2020?
c. In order to prepare the annual financial statements, record the adjusting journal entry on December 31, 2020.
d. Record the payment of wages on January 11, 2021.Financial Statements