6:16 HW 5 - Chapter 11-1.pdf - Read-only LO 2 Vacation Pay Liability E6B. Bistro Corporation gives three weeks' paid vacation to each employee who has worked at the company for one year. Based on studies of employee turnover and previous (Continued) Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 11: Current Liabilities and Fair Value Accounting experience, management estimates that 65 percent of the employees will qualify for vacation pay this year. 1. Assume that Bistro's July payroll is $150,000, of which $10,000 is paid to employ- ees on vacation. Figure the estimated employee vacation benefit for the month. (Round to the nearest thousandth.) 2. Prepare a journal entry to record the employee benefit for July. 3. Prepare a journal entry to record the pay to employees on vacation. Continuancies and commitmente in