Question
Lada started its operations in Jordan on 01/2/2014. It employs 15 people who work 8 hours a day. The company's internal system grants each employee
Lada started its operations in Jordan on 01/2/2014. It employs 15 people who work 8 hours a day. The company's internal system grants each employee 10 days of paid leave annually. The leave days can be taken after 1/10 of the year following the year in which the leave is acquired (i.e. the leave is not allowed to be taken except in the following year). If you know that the average hourly wage rate is 24 dinars in 2014 and 25.50 dinars in 2015. The average vacation days used by each employee in 2014 was 9 days. Lada calculates the cost of compensatory leave at the applicable pay rates when due. Required: Prepare journal entries to record transactions related to paid holidays during 2014 and 2015.
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