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I understand part A please help with part B. Please explain your steps very clearly. I'll be sure to leave a thumbs up if correct.
I understand part A please help with part B. Please explain your steps very clearly. I'll be sure to leave a thumbs up if correct.
PS it looks like only unused sick days carry
Tamarisk Company began operations on January 2, 2019. It employs 12 individuals who work 8-hour days and are paid hourly. Each employee earns 13 paid vacation days and 8 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 Wage Rate Sick Days Used by Each Employee Vacation Days Used by Each Employee 2019 2020 0 12 2020 2019 $13 2020 $15 2019 5 Tamarisk 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 Time Was Earned 2019 2020 Projected Future Pay Rates Used to Accrue Vacation Pay $14 19 15.31 (a) Your Answer Correct Answer (Used) Your answer is correct. Prepare journal entries to record transactions related to compensated absences during 2019 and 2020. (If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to O decimal places, e.g. 5,125.) Debit Credit Date Account Titles and Explanation 2019 Salaries and Wages Expense 17709 17709 Salaries and Wages Payable (To accrue the expense and liability for vacations) Salaries and Wages Expense 6240 Cash 6240 (To record sick leave paid) No Entry 0 No Entry (To record vacation time paid) 2020 Salaries and Wages Expense 19107 Salaries and Wages Payable 19107 (To accrue the expense and liability for vacations) Salaries and Wages Expense 10080 Cash 10080 (To record sick leave paid) Salaries and Wages Payable 16347 Salaries and Wages Expense 933 Cash 17280 (b) * Your answer is incorrect. Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2019 and 2020. (Round answers to decimal places, e.g. 5,125.) 2019 2020 Accrued liability $ 3744 5184 eTextbook and Media List of Accounts Save for Later Attempts: 2 of 3 used SubmitStep by Step Solution
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