A business provides its employees with varying amounts of vacation per year, depending on the length of employment. The estimated amount of the current year's vacation pay is $42,000. a. Journalize the adjusting entry required on January 31 , the end of the first month of the current year, to record the accrued vacation pay. If an amount box does not require an entry, leave it blank. Feedback TCheck My Work Pay attention to the dates given. An employee's right to paid vacation time is an accrued expense adjusting entry. Recall that all adjusting entries affect at least one balance sheet account and one income statement account. b. How is the vacation pay reported on the company's balance sheet? , unless employees are allowed to accumulate their vacation pay for use in future years