Bettinghaus Corporation began business on January 2, 2019, with five employees Its sick leave and vacation policy follows Each employee is allowed 6 days of paid sick leave each year and one day of paid vacation leave for each month worked The accrued vacation leave cannot be taken until the employee has been with the company 1 year The sick leave, if not used, accumulates to an 18 day maximum The vacation leave accumulates for 5 years, but at any time the employee may request additional compensation in lieu of taking paid vacation leave The company records its liability for both compensated absences on a quarterly basis The daily gross wages for each employee are $120 Required 1 Prepare journal entries to record the liability for compensated absences for the first quarter of 2019 Assume no sick leave had been taken by the employees 2 Prepare a partial interim balance sheet showing how the liability created in Requirement 1 would be reported on March 31, 2019 3 Next Level Discuss the underlying conceptual basis of accounting for compensated absences CHART OF ACCOUNTS Bettinghaus Corporation General Ledger REVENUE 411 Sales Revenue ASSETS 111 Cash 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 181 Equipment 189 Accumulated Depreciation EXPENSES 500 Cost of Goods Sold 511 Insurance Expense 512 Utilities Expense 521 Salaries Expense 532 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses 910 Income Tax Expense LIABILITIES 211 Accounts Payable 231 Salaries Payable 232 Liability for Compensated Absences 250 Unearned Revenue 261 Income Taxes Payable 1 Prepare two journal entries on March 31, 2019 recorda come earned and vocation and Assume no s ave had been taken by the employees General ournal Instructions GENERAL JOURNAL Balance Sheet 2 Prepare a partial interim balance sheet showing how the ability created in Requirement I would be reported on March 31, 2019 Balance Sheet Instruction BETTINGHAUS CORPORATION Partial Balance Sheet March 31, 2019 Current Liabilities

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Bettinghaus Corporation began business on January 2, 2019, with five employees. Its sick leave and vacation policy follows: Each employee is allowed 6 days of

Bettinghaus Corporation began business on January 2, 2019, with five employees. Its sick leave and vacation policy follows: Each employee is allowed 6 days of paid sick leave each year and one day of paid vacation leave for each month worked. The accrued vacation leave cannot be taken until the employee has been with the company 1 year. The sick leave, if not used, accumulates to an 18-day maximum. The vacation leave accumulates for 5 years, but at any time the employee may request additional compensation in lieu of taking paid vacation leave. The company records its liability for both compensated absences on a quarterly basis. The daily gross wages for each employee are $120.

Required:

1.	Prepare journal entries to record the liability for compensated absences for the first quarter of 2019. Assume no sick leave had been taken by the employees.
2.	Prepare a partial interim balance sheet showing how the liability created in Requirement 1 would be reported on March 31, 2019.
3.	Next Level Discuss the underlying conceptual basis of accounting for compensated absences.

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CHART OF ACCOUNTS Bettinghaus Corporation General Ledger REVENUE 411 Sales Revenue ASSETS 111 Cash 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 181 Equipment 189 Accumulated Depreciation EXPENSES 500 Cost of Goods Sold 511 Insurance Expense 512 Utilities Expense 521 Salaries Expense 532 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses 910 Income Tax Expense LIABILITIES 211 Accounts Payable 231 Salaries Payable 232 Liability for Compensated Absences 250 Unearned Revenue 261 Income Taxes Payable 1. Prepare two journal entries on March 31, 2019 recorda come earned and vocation and Assume no s ave had been taken by the employees General ournal Instructions GENERAL JOURNAL Balance Sheet 2. Prepare a partial interim balance sheet showing how the ability created in Requirement I would be reported on March 31, 2019 Balance Sheet Instruction BETTINGHAUS CORPORATION Partial Balance Sheet March 31, 2019 Current Liabilities