Question
Kitana Company gives each of its 50 employees (assume they were all employed continuously through 2019 and 2020) 12 days of vacation a year if
Kitana Company gives each of its 50 employees (assume they were all employed continuously through 2019 and 2020) 12 days of vacation a year if they are employed at the end of the year. The vacation accumulates and may be taken starting January 1 of the next year. The employees work 8 hours per day. In 2019, they made P14 per hour and in 2020 they made P16 per hour. During 2020, they took an average of 9 days of vacation each. Kitanas policy is to record the liability existing at the end of each year at the wage rate for that year.
What amount of vacation liability would be reflected on the 2020 statement of financial position?
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