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Pina Colada Company pays salaries of $ 13,370 every Monday for the preceding 5-day week (Monday through Friday). Assume December 31 falls on a Tuesday, so Pina Colada's employees have worked 2 days without being paid at the end of the fiscal year. Part 1 Your answer is correct. Assume the company does not use reversing entries. Prepare the December 31 adjusting entry and the entry on Monday, January 6, when Pina Colada pays the payroll. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Dec. 31 Salaries and Wages Expense 5348 Salaries and Wages Payable 5348 Jan. 6 Salaries and wages Expense 8022 Salaries and Wages Payable 5348 Cash 13370 Part 2 Your answer is partially correct. Assume the company does use reversing entries. Prepare the December 31 adjusting entry, the January 1 reversing entry, and the entry on Monday, January 6, when Pina Colada pays the payroll. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Dec 31 Jan 1 Jan. 6 NI

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