Question
E13.4 (LO 1) (Compensated Absences) Assume the facts in E13.3 except that Broderick Company has chosen not to accrue paid sick leave until used, and
E13.4 (LO 1) (Compensated Absences) Assume the facts in E13.3 except that Broderick Company has chosen not to accrue paid sick leave until used, and has chosen to accrue vacation time at expected future rates of pay without discounting. The company used the following projected rates to accrue vacation time.
| Year in Which Vacation | Projected Future Pay Rates | |
| Time Was Earned | Used to Accrue Vacation Pay | |
| 2019 | $10.75 | |
| 2020 | 11.60 |
Instructions
a. Prepare journal entries to record transactions related to compensated absences during 2019 and 2020.
b. Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2019, and 2020.
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Financial and Managerial Accounting
Authors: Horngren, Harrison, Oliver
3rd Edition
978-0132497992, 132913771, 132497972, 132497999, 9780132913775, 978-0132497978
