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On January 1 , 2 0 2 4 , Poplar Fabricators Corporation agreed to grant its employees two weeks of vacation each year, with the

On January 1,2024, Poplar Fabricators Corporation agreed to grant its employees two weeks of vacation each year, with the
stipulation that vacations earned each year can be taken the following year. For the year ended December 31,2024, Poplar
Fabricators' employees each earned an average of $1,000 per week. Nine hundred vacation weeks earned in 2024 were not taken
during 2024.
Required:
Prepare the appropriate adjusting entry for vacations earned but not taken in 2024.
Suppose that, by the time vacations actually are taken in 2025, salary rates for employees have risen by an average of 6 percent
from their 2024 level. Also, assume salaries earned in 2025(including vacations earned and taken in 2025) were $35 million.
Prepare a journal entry that summarizes 2025 salaries and the payment for 2024 vacations taken in 2025.
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