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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. They were paid in full on Friday, December 28, 2013. The next week, the five employees worked only four days because New Year's Day was an unpaid holiday.
a. Prepare the adjusting entry that would be recorded on Monday, December 31, 2013.
You should then respond to the statement by arguing a position. Do you agree or disagree, explaining why. You should give consideration to events in recent years that may have had an influence.
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