1)prepare the jornal entires compensated absences during 2019 and 2020
2)compute the amounts of any liability compensated absences that should be reported on the balance sheet at December 31, 2019 and 2020
Blossom Company began operations on January 2, 2019. It employs 9 individuals who work 8-hour days and are paid hourly. Each employee earns 9 paid vacation days and 6 paid sick days annually, Vacation days may be taken after January 15 of the year following the year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additional information is as follows, Vacation Days Actual Hourly Sick Days Used Used Wage Rate by Each by Each Employee Employee 2019 2019 2020 2019 2020 $12 $13 4 5 2020 0 8 Blossom Company has chosen to accrue the cost of compensated absences at rates of pay in effect during the period when earned and to accrue sick pay when earned. Prepare journal entries to record transactions related to compensated absences during 2019 and 2020. (If no entry is required, select "No Entry for the account titles and enter o for the amounts. Credit account titles are automatically Indented when amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit 2019 Salaries and Water Expense 8640 Salaries and Wopes Payabiat 8640 (To accrue the expense and liability for vacations) Salaries and Wages Expense 6720 6720 Salaries and Wages Payable (To accrue the expense and liability for sick pay) Salaries and Wopes Payable 4800 Cash 4800 (To record payment for compensated time when used by employees) Salaries and expense 2020 9360 9360 Starts and Wates Payable (To accrue the expense and liability for vacations) Salaries and Wapes Expose 7280 7280 Salsiccand Waco Payable (To accrue the expense and liability for sick pay) Prepare journal entries to record transactions related to compensated absences during 2019 and 2020. (If no entry is required, select "No Entry for the account titles and enter o for the amounts. Credit account titles are automatically Indented when amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit 2019 Salaries and Water Expense 8640 Salaries and Wopes Payabiat 8640 (To accrue the expense and liability for vacations) Salaries and Wages Expense 6720 6720 Salaries and Wages Payable (To accrue the expense and liability for sick pay) Salaries and Wopes Payable 4800 Cash 4800 (To record payment for compensated time when used by employees) Salaries and expense 2020 9360 9360 Starts and Wates Payable (To accrue the expense and liability for vacations) Salaries and Wapes Expose 7280 7280 Salsiccand Waco Payable (To accrue the expense and liability for sick pay) 2020 Salaries and Wages Expense 9360 9360 Salaries and Wages Payable (To accrue the expense and liability for vacations) Salaries and Wages Expense 7280 7280 Salaries and Wages Payable (To accrue the expense and liability for sick pay) Salaries and Wages Expense 640 Salaries and Wages Payable 7680 8320 Cash (To record vacation time paid) Salaries and Wages Expense 160 Salaries and Wages Payable 6080 6240 (To record sick leave paid)
