Question
The employees of A COMPANY are allowed to take 12 sick days per year. The sick days vest and are paid at the current rate
The employees of A COMPANY are allowed to take 12 sick days per year. The sick days vest and are paid at the current rate of $ 145 per day. Verde employs 85 employees. Employees took 75% of the sick days in the current year and carried over the remainder of the days to take next year. Prepare the journal entry necessary in the next year to record the payment of the sick days carried over assuming the wage rate increases to $160 per day. (Record debits first, then credits. Exclude explanations from journal entries.)
The answer was this:
Wage Expense 3825
Liability for.... 36975
Cash 40800
I cannot figure out how to get these numbers from the problem above.
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