Response to the following problem:
Pablo Management has five part-time employees, each of whom earns $100 per day. They are normally paid on Fridays for work completed Monday through Friday of the same week. They were paid in full on Friday, December 28, 2011. The end of the year, December 31, 2011 falls on a Monday. The next week, the five employees worked only four days because New Years Day was an unpaid holiday. All five employees are paid as usual on Friday, January 4, 2012.
(a) Prepare the adjusting entry that would be recorded on Monday, December 31, 2011.
(b) Prepare the journal entry that would be made to record payment of the employees wages on Friday, January 4, 2012.