Pane records the adjusting entry for Liability for Compensated Absences. Pane began offering and accounting for Liability for Compensated Absences in the first quarter of this year as described on the "Information" tab. Assume that no vacation days were taken during the year.

1. Pane began offering compensated absences in January and started accounting for the Liability for Compensated Absences in the first quarter of this year. Assume that no vacation days were taken for the year.

Number of Employees: 150

Employee payment (daily): $184

Days of Vacation per Year: 12

information tab:

1100	Cash	572,000
1210	Investment in Available-for-Sale Securities	150,000
1215	Allowance for Change in Fair Value of Available-for-Sale Investments	20,000
1300	Accounts Receivable	3,946,000
1310	Allowance for Doubtful Accounts		875,000
1400	Inventory	5,688,000
3100	Machinery	300,000
3110	Accumulated Depreciation-Machinery		300,000
3400	Buildings	840,000
3410	Accumulated Depreciation - Building		840,000
3500	Land	460,000
3700	Goodwill	530,000
5100	Deferred Tax Assets	1,500,000
6000	Accounts Payable		2,945,000
6060	Employee Income Tax Withholding Payable		185,000
6070	Federal Unemployment Tax Payable		9,200
6080	State Unemployment Tax Payable		46,000
6090	F.I.C.A. Tax Payable		283,000
7000	Common Stock		4,000,000
7010	Additional Paid in Capital - Common Stock		1,150,000
7020	Preferred Stock		1,200,000
7030	Additional Paid in Capital - Preferred Stock		400,000
7050	Retained Earnings		1,782,800
7060	Treasury Stock	30,000
7070	Unrealized Gain/Loss: Available-for-Sale Securities		20,000
		14,036,000	14,036,000

make adjusted journal entry for December 31st-no other numbers are provided

dr.

cr.