Exercise 3 - 2 n the blank space beside each adjusting entry , enter the letter of the explanation A through F that most closely describes the entry . A.To record this period 's depreciation expense . B. To record accrued salaries expense . C.To record this period 's use of a prepaid expense . D.To record accrued interest revenue . E.To record accrued interest expense . F. To record the earning of previously unearned income . Exercise 3 - 3 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 , 2015 , 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 , 2015 , was a Monday , prepare the adjusting entry that would be recorded at the close of that day . ( b ) Assuming that January 4 , 2016 , was a