Question
Gonzalez Co. accrues the liability for vacation pay at the rate of pay in effect when the compensated time is earned. Gonzalez has 90 employees
Gonzalez Co. accrues the liability for vacation pay at the rate of pay in effect when the compensated time is earned. Gonzalez has 90 employees who all work 8-hour days. The employees earn 12 paid vacation days per year. They may take those vacation days any time after the year in which the days are earned. Information about the rates of pay, vacation days earned, and vacation days used for 2020, 2021, and 2022 is as follows: Year Hourly wages Vacation days earned by each employee Vacation days used by each employee 2020 $30.00 12 0 2021 $31.00 12 9 2022 $32.00 12 12
What amount should Gonzalez present on its December 31, 2022 balance sheet as its liability for vacation pay?
$803,520
$276,480
$410,400
$343,440
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