Question
Sheffield Company began operations on January 2, 2019. It employs 10 individuals who work 8-hour days and are paid hourly. Each employee earns 10 paid
Sheffield Company began operations on January 2, 2019. It employs 10 individuals who work 8-hour days and are paid hourly. Each employee earns 10 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 | |||||||
$6 | $7 | 0 | 9 | 6 | 7 |
Sheffield Company has chosen to accrue the cost of compensated absences at rates of pay in effect during the period when earned and to accrue sick pay when earned.
(a)
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Your answer is partially correct.
Prepare journal entries to record transactions related to compensated absences during 2019 and 2020. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
enter an account title to accrue the expense and liability for sick pay | enter a debit amount | enter a credit amount | |
---|---|---|---|
enter an account title to accrue the expense and liability for sick pay | enter a debit amount | enter a credit amount | |
(To accrue the expense and liability for sick pay) | |||
enter an account title to record vacation time paid | enter a debit amount | enter a credit amount | |
enter an account title to record vacation time paid | enter a debit amount | enter a credit amount | |
enter an account title to record vacation time paid | enter a debit amount | enter a credit amount | |
(To record vacation time paid) | |||
enter an account title to record sick leave paid | enter a debit amount | enter a credit amount | |
enter an account title to record sick leave paid | enter a debit amount | enter a credit amount | |
enter an account title to record sick leave paid | enter a debit amount | enter a credit amount | |
(To record sick leave paid) |
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