Problem
Pablo Management has four part-time employees, each of whom earns $110 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 four employees worked only four days because New Year's Day was an unpaid holiday.
Prepare the adjusting entry that would be recorded on Monday, December 31, 2015 and Friday, January 4, 2016.