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At the end of June, Morton Company had a balance of $49,900 in the vacation benefits payable account. During July, employees earned an additional $3,110
At the end of June, Morton Company had a balance of $49,900 in the vacation benefits payable account. During July, employees earned an additional $3,110 in vacation benefits, but some employees used vacation days that amounted to $2,490 of the vacation benefits. The $2,490 was charged to Wage Expense when it was paid in July. What adjusting entry would Morton Company make at the end of July to bring the vacation benefits payable account up to date?
Account Debit Credit Vacation Benefits Payable X 2,490X Benefits Expense X 2,490 X Feedback Check My Work Additional Vacation benefits earned less benefits paid; balance should be debited to Vacation Benefits Expense and credited to Vacation Benefits Payable. Hint: "Take beginning balance and accrue current month and subtract what was used. Calculate journal entry amount needed to bring payable account to the correct amount." Account Debit Credit Vacation Benefits Payable X 2,490X Benefits Expense X 2,490 X Feedback Check My Work Additional Vacation benefits earned less benefits paid; balance should be debited to Vacation Benefits Expense and credited to Vacation Benefits Payable. Hint: "Take beginning balance and accrue current month and subtract what was used. Calculate journal entry amount needed to bring payable account to the correct amountStep by Step Solution
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