Question 34 (2 points) Employees of the City of Orleans earn ten days paid leave for each 12 months of employment. The city has a policy that employees must take their vacation days during the year following the year in which they are earned. If they do not take vacation in the allotted period, they forfeit the vacation pay benefit. Traditionally, employees have taken 80 percent of the vacation days earned. During the current year, city employees earned $600,000 in vacation pay. Assuming the city maintains its books and records in a manner to facilitate the preparation of government-wide financial statements, which of the following entries should be made to record the vacation pay earned during the current period? Debit Expenditures $600,000; credit Vacation payable $600,000. Debit Expenses $600,000, credit Vacation payable $600,000. Debit Expenses $480,000; credit Vacation pay payable $480,000. No entry required. Question 35 (2 points) Employees of the general fund of Scott City earn ten days of vacation for each 12 months of employment. The city permits employees to carry the vacation days forward as long as they wish. During the current year employees earned $800,000 of vacation benefits, of which the city estimates $500,000 will be taken in the next year and the balance will be carried forward. Assuming that the city maintains its books and records in a manner that facilitates the preparation of fund financial statements which of the following entries should be made in the general fund to record the vacation pay earned during the current period? Debit Expenditures $800,000; credit Vacation pay payable $800,000. Debit Expenditures $500,000; credit Vacation pay payable $500,000. Debit Vacation expense $800,000; credit Vacation pay payable $800,000 No entry required