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.

Transcribed Image Text:

January 2021 December 2020 December January Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat 15 10 17 11 12 15 13 14 16 17 18 12 19 10 11 13 14 15 16 26 21 22 23 25 19 21 20 24 17 18 20 22 23 28 29 30 31 26 24 27 24 25 27 28 30 31 Payday Salary expense incurred Salary expense incurred 18