Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta

Exercise 49

Pablo Management has five part-time employees, each of whom earns $250 per day. They are normally paid on Fridays for work completed Monday through Friday of the same week. Assume that December 28, 2015, was a Friday, and that they were paid in full on that day. The next week, the five employees worked only four days because New Year's Day was an unpaid holiday. ( a ) Assuming that December 31, 2015, was a Monday, prepare the adjusting entry that would be recorded at the close of that day. ( b ) Assuming that January 4, 2016, was a Friday, prepare the journal entry that would be made to record payment of the employees' wages.