Exercise 3-2

Pablo Management has two employees, each of whom earns $90 per day. They are paid on Fridays for work completed Monday through Friday of the same week. Near year-end, the two employees worked Monday, December 31, and Wednesday through Friday, January 2, 3, and 4. New Years Day (January 1) was an unpaid holiday. Prepare the year-end adjusting entry for wages expense and record payment of the employees wages on Friday, January 4.