Assume that for the August 20 payroll, McFriend, Inc. (RE13-3) incurs the following payroll expenses:

Prepare the journal entry to record McFriend’s August 20 payroll.
In RE13-3, McFriend, Inc., records its liabilities for employees’ vacations semiannually. As of January 1, McFriend, Inc., has 50 employees (25 in administration and 25 in sales) who are paid an average of $176 per day. The company allows 15 paid vacation days per year. Prepare the journal entry for July1.

Transcribed Image Text:

Time WorkedVacation Taken Administration Staff Sales Staff $64,000 56,000 $5,300 4,700