chapter 10-16

Accrued Vacation Pay

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 $101,400.

Journalize the adjusting entry required on January 31, the end of the first month of the current year, to record the accrued vacation pay.

Vacation Pay Expense $___________________

Vacation Pay Payable $___________________ chapter 10-19

Entries for Installment Note Transactions

On the first day of the fiscal year, Shiller Company borrowed $32,000 by giving a five-year, 11% installment note to Soros Bank. The note requires annual payments of $8,783, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $3,520 and principal repayment of $5,263.

Journalize the entries to record the following:

a1. Issued the installment note for cash on the first day of the fiscal year.

	Cash $_______
	Notes Payable $________

a2. Paid the first annual payment on the note. If an amount box does not require an entry, leave it blank.

	Interest Expense _______ _______
	Notes Payable
	Cash _________ _________