January 19: On January 1, North Country Hotel and Resort hired an independent contractor to develop scheduling software. This is a year contract for $120,000/annual. The contractor is paid bi-weekly on Fridays. The first pay period is for the week January 1-5 and January 8-12. Payday is January 19. Independent contractors are not employees, so the accounts payable department would normally issue the checks and generate a 1099 at the end of the year. Calculate the first paycheck payment to the independent contractor and record the journal entry. For our example, you can use Salaries and Wages Expense and Cash accounts.

On the basis that there are 52 weeks in a year, hence, there would be 26 bi-weeks in a year, in order to determine the amount of first paycheck payment to the independent contractor, we simply divide the annual cost of contract by 26 bi-weeks in a year.

first paycheck payment =annual contract fees/26 bi-weeks

first paycheck payment =$120,000/26

first paycheck payment =$4,615.38

The paycheck refers to first 2 weeks which ends on on 12th January, whereas the actual payment would occur a week later on 19th of January, as a result, the amount is owed until 19th January, which means that salaries and wages expense would be debited and salaries and wages payable would be credited until actual payment is made on the 19th of January.

Find out more about accrued wages and salaries on:brainly.com/question/6693966

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