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.

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. Explanation: a. Dec. 31, 2013: To record accrued wages for one day (5 workers × $250) = $1,250.     b. Jan. 4, 2014: To record accrued and current wages. Wages expense = 5 workers × 3 days × $250 = $3,750. Cash = 5 workers × 4 days × $250 = $5,000.