Use the following information for Questions 1 - 3:

An employee worked the entire year of 2019 and earned two weeks of vacation as specified in the company's labor agreement. The agreement also states that the two weeks of vacation shall be taken any time in 2020 and the amount paid will be 80 hours multiplied by the employee's rate of pay at December 31, 2019. On December 31, 2019 the employee's pay rate was $15. Assume that the company uses the accrual method of accounting.

1. Which financial statements are affected in the year 2019?

A. Balance Sheet Only

B. Income Statement Only

C. Balance Sheet & Income Statement

2. The amount that will be reported on the 2020 income statement as Vacation Expense for the vacation taken in 2020 is (how many dollars?)

3. When the employer pays the employee in 2020 for the vacation earned in 2019, what account will the company debit?

A. Cash

B. Vacation Expense

C. Vacation Payable