Question
State University, a public university, has a policy of granting faculty members a one-year paid sabbatical leave after a period of seven years continuous employment.
State University, a public university, has a policy of granting faculty members a one-year paid sabbatical leave after a period of seven years continuous employment. The leave is for further study, research or public service. A particular faculty member earns $70,000 per year. Assuming that the college maintains its books and records in a manner that facilitates the preparation of the fund financial statements and assuming that any appropriate accruals have been made, what is the appropriate entry to record the employee s salary paid while on sabbatical leave?
Debit Expenditures $70,000; Credit Cash $70,000. | ||
Debit Expenses $70,000; Credit Cash $70,000. | ||
Debit Sabbatical Leave Payable $70,000; Credit Cash $70,000. | ||
No entry required. |
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