View Window Help Tools John ). Wild, Ken S... * 176 / 1217 l e to nearest to maturity or vice versa? connect EXERCISES 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, 2017, 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, 2017, was a Monday, prepare the adjusting entry for wages expense that would be recorded at the close of that day. b. Assuming that January 4, 2018, was a Friday, prepare the journal entry that would be made to record payment of the employees' wages for that week. Exercise 3.1 Adjusting and paying accrued wages Exercise 3-2 Adjusting and paying accrued expenses The following three separate situations require adjusting journal entries to prepare financial statements as of April 30. For each situation, present both: The April 30 adjusting entry. The subsequent entry during May to record payment of the accrued expenses Entries can draw from the following partial chart of accounts: Cash; Accounts Receivable; Prepaid Interest: Salaries Payable: Interest Payable; Legal Services Payable; Unearned Revenue; Revenue; Salaries Expense; Interest Expense; Legal Services Expense; Depreciation Expense. a. On April 1, the company retained an attorney for a flat monthly fee of $3,500. Payment for April legal services was made by the company on May 12. b. A $900,000 note payable requires 12% annual interest, or $9,000, to be paid at the 20th day of each month. The interest was last paid on April 20, and the next payment is due on May 20. As of April 30, $3,000 of interest expense has accrued. c. Total weekly salaries expense for all employees is $10,000. This amount is paid at the end of the day on Friday of each five-day workweek. April 30 falls on a Tuesday, which means that the employees had worked two days since the last payday. The next payday is May 3. check fb May 20 DE interest Expense 36.000