Accrued vacation pay Instructions Chart of Accounts Journal Final question Instructions 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 $30,000. Required: 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. Refer to the Chart of Accounts for exact wording of account titles. b. How is the vacation pay reported on the company's balance sheet? When is this amount removed from the company's balance sheet? Instructions Chart of Accounts Journal Final question Chart of Accounts CHART OF ACCOUNTS General Ledger ASSETS REVENUE 110 Cash 410 Sales 111 Accounts Receivable 610 Interest Revenue 112 Interest Receivable 113 Notes Receivable EXPENSES 115 Inventory 510 Cost of Goods Sold 116 Supplies 520 Salaries Expense 118 Prepaid Insurance 524 Depreciation Expense-Building 525 Delivery Expense 120 Land 123 Building 526 Repairs Expense 124 Accumulated Depreciation-Building 529 Selling Expenses 125 Office Equipment 531 Rent Expense 126 Accumulated Depreciation Office Equipment 532 Depreciation Expense-Office Equipment 533 Insurance Expense LIABILITIES 534 Supplies Expense 210 Accounts Payable 535 Payroll Tax Expense 536 Vacation Pay Expense 213 Interest Payable 214 Notes Payable 537 Pension Expense Instructions Chart of Accounts Journal Final question Chart of Accounts --- 210 Accounts Payable 535 Payroll Tax Expense 536 Vacation Pay Expense 213 Interest Payable 214 Notes Payable 537 Pension Expense 215 Salaries Payable 538 Cash Short and Over 216 Social Security Tax Payable 539 Product Warranty Expense 217 Medicare Tax Payable 540 Miscellaneous Expense 218 Employees Federal Income Tax Payable 710 Interest Expense 219 Employees State Income Tax Payable 221 Retirement Savings Deductions Payable 224 Federal Unemployment Tax Payable 225 State Unemployment Tax Payable 226 Vacation Pay Payable 227 Unfunded Pension Liability 228 Product Warranty Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary Instructions Chart of Accounts Journal Final question Journal 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. Refer to the Chart of Accounts for exact wording of account titles. PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 Adjusting Entries 2 3 Instructions Chart of Accounts Journal Final question Final question x 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. When is this amount removed from the company's balance sheet