Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Valuation For Accountants A Short Course Based On IFRS

Authors: Stephen Lynn

1st Edition

9811503567, 9789811503566

More Books

Students also viewed these Accounting questions

Question

Create the matrix A

Answered: 1 week ago