Pina 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 Vacation Days Used by Each Employee Sick Days Used by Each Employee 2019 2020 2019 2020 2019 2020 $13 $14 0 12 5 6 Pina 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 Projected Future Pay Rates Used to Accrue Vacation Pay 2019 $13 87 2020 14 96 Prepare journal entries to record transactions related to compensated absences during 2019 and 2020 (If no entry is required, select No Ent entered Do not indent manually Round answers to decimal places, eg 5,125 ) Date Account Titles and Explanation Debit Credit 2019 Salaries and Wages Expense 16224 16224 Salaries and Wages Payable (To accrue the expense and liability for vacations) Salaries and Wages Expense 998 Salaries and Wages Payable 9984 (To record sick leave paid) Salaries and Wages Payable 6240 Cash 6240 (To record vacation time paid) 2020 Salaries and Wages Expense 17472 Salaries and Wages Payable 17472 (To accrue the expense and liability for vacations) Salaries and Wages Expense 10752 10752 Salaries and Wages Payable (To record sick leave paid) Salaries and Wages Expense 1152 Salaries and Wages Payable 14976 Cash 16128 (To record vacation time paid) X 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 0 decimal places, e g 5,125 ) 2019 2020 Accrued liability S 2632 $ 3340 e Textbook and Media

Question

Pina 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 Vacation Days Used by Each Employee Sick Days Used by Each Employee 2019 2020 2019 2020 2019 2020 $13 $14 0 12 5 6 Pina 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 Projected Future Pay Rates Used to Accrue Vacation Pay 2019 $13 87 2020 14 96 Prepare journal entries to record transactions related to compensated absences during 2019 and 2020  (If no entry is required, select  No Ent entered  Do not indent manually  Round answers to decimal places, eg  5,125 ) Date Account Titles and Explanation Debit Credit 2019 Salaries and Wages Expense 16224 16224 Salaries and Wages Payable (To accrue the expense and liability for vacations) Salaries and Wages Expense 998 Salaries and Wages Payable 9984 (To record sick leave paid) Salaries and Wages Payable 6240 Cash 6240 (To record vacation time paid) 2020 Salaries and Wages Expense 17472 Salaries and Wages Payable 17472 (To accrue the expense and liability for vacations) Salaries and Wages Expense 10752 10752 Salaries and Wages Payable (To record sick leave paid) Salaries and Wages Expense 1152 Salaries and Wages Payable 14976 Cash 16128 (To record vacation time paid) X 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 0 decimal places, e g  5,125 ) 2019 2020 Accrued liability S 2632 $ 3340 e Textbook and Media

Accepted Answer

The Answer is in the image, click to view ...

Question

Pina 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

Step by Step Solution

Step: 1

Get Instant Access to Expert-Tailored Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Recommended Textbook for

Practical Auditing Techniques For ISO/TS 16949

Students also viewed these Accounting questions

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question