Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help with c) please make sure to provide four answers, with solutions the better, i only have one chance left for this question.

I need help with c) please make sure to provide four answers, with solutions the better, i only have one chance left for this question.

Thanks

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Flounder Limited began operations on January 2, 2019. The company employs 6 individuals who work 8 hour days and are paid hourly. Each employee earns 10 paid vacation days and 6 paid sick days annually. Vacation days may be taken after January 15 of the year following the year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additional information is as follows: Actual Hourly Vacation Days Used Sick Days Used by Each Employee Wage Rate by Each Employee 2019 2020 2019 2020 2019 2020 $20 $22 0 9 4 5 Assume that Flounder Limited has chosen not to recognize paid sick leave until it is used, and has chosen to accrue vacation time at expected future rates of pay without discounting. Flounder uses the following projected rates to accrue vacation time: Projected Future Pay Rates Used Year in which Vacation Time Was Earned to Accrue Vacation Pay 2019 $20.75 per hour 2020 $22.60 per hour Prepare the journal entries to record the transactions related to vacation entitlement during 2019 and 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit 2019 Salarles and Wages Expense 9960 Vacation Wages Payable (To accrue the expense and liability for vacations) No Entry No Entry (To record vacation time paid) Salarles and Wages Expense Vacation Wages Payable (To accrue the expense and liability for vacations) Salarles and Wages Expense Vacation Wages Payable Cash (To record vacation time paid) 2019 2020 2020 10848 5:40 8964 [|]][[1 9960 10848 9504 (b) Your answer is correct. Prepare the journal entries to record the transactions related to sick days during 2019 and 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit 2019 Salaries and Wages Expense 3840 Cash 2020 Salaries and Wages Expense 5280 Cash 3840 5280 (c) * Your answer is incorrect. Calculate the amounts of any liability for vacation pay and sick days that should be reported on the SFP at December 31, 2019, and 2020. 2019 2020 Liability for vacation pay $ 9600 $ 11520 Liability for sick pay $ 1920 $ 3168

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Development Of The American Public Accounting Profession

Authors: T.A. Lee

1st Edition

0415403944, 9780415403948

More Books

Students also viewed these Accounting questions