Question
Sunland Company began operations on January 2, 2019. It employs 12 individuals who work 8-hour days and are paid hourly. Each employee earns 11 paid
Sunland Company began operations on January 2, 2019. It employs 12 individuals who work 8-hour days and are paid hourly. Each employee earns 11 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 | |||||||
$8 | $9 | 0 | 10 | 6 | 7 |
Sunland 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.
Date | Account Titles and Explanation | Debit | Credit |
---|---|---|---|
2019 | enter an account title to accrue the expense and liability for vacations | enter a debit amount | enter a credit amount |
enter an account title to accrue the expense and liability for vacations | enter a debit amount | enter a credit amount | |
(To accrue the expense and liability for vacations) | |||
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 payment for compensated time when used by employees | enter a debit amount | enter a credit amount | |
enter an account title to record payment for compensated time when used by employees | enter a debit amount | enter a credit amount | |
(To record payment for compensated time when used by employees) | |||
2020 | enter an account title to accrue the expense and liability for vacations | enter a debit amount | enter a credit amount |
enter an account title to accrue the expense and liability for vacations | enter a debit amount | enter a credit amount | |
(To accrue the expense and liability for vacations) | |||
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) |
Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2019 and 2020.
2019 | 2020 | |||
---|---|---|---|---|
Vacation Wages Payable | $enter a dollar amount | $enter a dollar amount | ||
Sick Pay Wages Payable | $enter a dollar amount | $enter a dollar amount |
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