Question

In: Accounting

Sheffield Company began operations on January 2, 2019. It employs 9 individuals who work 8-hour days...

Sheffield Company began operations on January 2, 2019. It employs 9 individuals who work 8-hour days and are paid hourly. Each employee earns 9 paid vacation days and 7 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

$6 $7 0 8 5 6


Sheffield 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.

1. Prepare journal entries to record transactions related to compensated absences during 2019 and 2020. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

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)

2. 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

PLEASE PROVIDE STEPS AND EXPLANATION WITH ANSWERS. THANK YOU!

Solutions

Expert Solution



Related Solutions

Blossom Company began operations on January 2, 2019. It employs 9 individuals who work 8-hour days...
Blossom Company began operations on January 2, 2019. It employs 9 individuals who work 8-hour days and are paid hourly. Each employee earns 10 paid vacation days and 6 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...
Grouper Company began operations on January 2, 2019. It employs 9 individuals who work 8-hour days...
Grouper Company began operations on January 2, 2019. It employs 9 individuals who work 8-hour days and are paid hourly. Each employee earns 10 paid vacation days and 6 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...
Sunland Company began operations on January 2, 2019. It employs 11 individuals who work 8-hour days...
Sunland Company began operations on January 2, 2019. It employs 11 individuals who work 8-hour days and are paid hourly. Each employee earns 12 paid vacation days and 7 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...
Swifty Company began operations on January 2, 2019. It employs 11 individuals who work 8-hour days...
Swifty Company began operations on January 2, 2019. It employs 11 individuals who work 8-hour days and are paid hourly. Each employee earns 10 paid vacation days and 6 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...
Whispering Company began operations on January 2, 2019. It employs 12 individuals who work 8-hour days...
Whispering 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 7 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...
Zeile Company began operations on January 2, 2016. It employs 9 individuals who work 8‐hour days...
Zeile Company began operations on January 2, 2016. It employs 9 individuals who work 8‐hour days and are paid hourly. Each employee earns 10 paid vacation days and 6 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.   Zeile Company has chosen not to accrue paid sick leave until used, and...
Zeile Company began operations on January 2, 2016. It employs 9 individuals who work 8‐hour days...
Zeile Company began operations on January 2, 2016. It employs 9 individuals who work 8‐hour days and are paid hourly. Each employee earns 10 paid vacation days and 6 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.   Zeile Company has chosen not to accrue paid sick leave until used, and...
Splish Company began operations on January 2, 2016. It employs 8 individuals who work 8-hour days...
Splish Company began operations on January 2, 2016. It employs 8 individuals who work 8-hour days and are paid hourly. Each employee earns 11 paid vacation days and 7 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...
Sheridan Company began operations on January 2, 2016. It employs  8 individuals who work 8-hour days and...
Sheridan Company began operations on January 2, 2016. It employs  8 individuals who work 8-hour days and are paid hourly. Each employee earns  10 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...
Marigold Company began operations on January 2, 2016. It employs 11 individuals who work 8-hour days...
Marigold Company began operations on January 2, 2016. It employs 11 individuals who work 8-hour days and are paid hourly. Each employee earns 9 paid vacation days and 7 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...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT