Question

In: Accounting

A business provides its employees with varying amounts of vacation per year, depending on the length...

A business provides its employees with varying amounts of vacation per year, depending on the length of employment. The estimated amount of the current year's vacation pay is $42,000.

a. Journalize the adjusting entry required on January 31, the end of the first month of the current year, to record the accrued vacation pay.

b. How is the vacation pay reported on the company's balance sheet?

c. When is this amount removed from the company's balance sheet?

Solutions

Expert Solution

1. Vacation pay expense Dr. 3500

Vacation pay payable 3500

2. It is recorded at the company's balance sheet as the accrued liablilty at the liabilities portion.

3. The amount will be removed once the vacation pay is paid and is debited to income account.

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

A business provides its employees with varying amounts of vacation per year, depending on the length...
A business provides its employees with varying amounts of vacation per year, depending on the length of employment. The estimated amount of the current year’s vacation pay is $63,600.   Required: A. Journalize the adjusting entry required on January 31, the end of the first month of the current year, to record the accrued vacation pay. Refer to the Chart of Accounts for exact wording of account titles. B. How is the vacation pay reported on the company’s balance sheet?...
Calculator Instructions A business provides its employees with varying amounts of vacation per year, depending on...
Calculator Instructions A business provides its employees with varying amounts of vacation per year, depending on the length of employment estimated amount of the current year's vacation pay is $40,800. Required: a. Journalize the adjusting entry required on January 31, the end of the first month of the current year, to record the accrued vacation pay Refer to the Chart of Accounts for exact wording of account titles b. How is the vacation pay reported on the company's balance sheet? When is this...
Martin Services Company provides its employees vacation benefitsand a defined contribution pension plan. Employees earned...
Martin Services Company provides its employees vacation benefits and a defined contribution pension plan. Employees earned vacation pay of $48,000 for the period. The pension plan requires a contribution to the plan administrator equal to 5% of employee salaries. Salaries were $500,000 during the period.a. Provide the journal entry for the vacation pay.b. Provide the journal entry for the pension benefit.
HK Limited has 100 employees. Each employee earns two weeks of paid vacation per year. Vacation...
HK Limited has 100 employees. Each employee earns two weeks of paid vacation per year. Vacation time not taken in the year earned can be carried over to two calendar years. Paid leave is first taken out of the balance brought forward from the previous year and then out of the current year’s entitlement (a FIFO basis). During 2019, 30 employees took both weeks’ vacation, but at the end of the year, 70 employees had vacation time carryover as follows:...
HK Limited has 100 employees. Each employee earns two weeks of paid vacation per year. Vacation...
HK Limited has 100 employees. Each employee earns two weeks of paid vacation per year. Vacation time not taken in the year earned can be carried over to two calendar years. Paid leave is first taken out of the balance brought forward from the previous year and then out of the current year’s entitlement (a FIFO basis). During 2019, 30 employees took both weeks’ vacation, but at the end of the year, 70 employees had vacation time carryover as follows:...
Survey of 85 company employees shows that the mean length of the Christmas vacation was 4.5...
Survey of 85 company employees shows that the mean length of the Christmas vacation was 4.5 days, with a standard deviation of 1.2 days. Construct a 92% confidence interval for the population mean length of vacation [5 points]. Interpret the results using complete sentences. [5 points]
The vice-president of administration at your company wonders whether employees are taking adequate amounts of vacation...
The vice-president of administration at your company wonders whether employees are taking adequate amounts of vacation time. Employee burnout is a concern. Research suggests that an employee taking less than 1.4 weeks of vacation annually is very likely to experience burnout. You are asked to analyze the employee vacation data and conduct a hypothesis test with the following results: t = 2.93 p = 0.0084 What factors should the vice-president consider in determining the presence of employee burnout?Do employees ta...
Employees earn vacation pay at the rate of one day per month. During the month of...
Employees earn vacation pay at the rate of one day per month. During the month of June, 10 employees qualify for one vacation day each. Their average daily wage is $150 per day. Which of the following is the necessary adjusting journal entry to record the June vacation benefits?
Vacation Destinations offers its employees the option of contributing up to 7% of their salaries to...
Vacation Destinations offers its employees the option of contributing up to 7% of their salaries to a voluntary retirement plan, with the employer matching their contribution. The company also pays 100% of medical and life insurance premiums. Assume that no employee's cumulative wages exceed the relevant wage bases. Payroll information for the first biweekly payroll period ending February 14 is listed below.   Wages and salaries $ 850,000         Employee contribution to voluntary retirement plan 35,700         Medical insurance premiums paid...
Vacation Destinations offers its employees the option of contributing up to 6% of their salaries to...
Vacation Destinations offers its employees the option of contributing up to 6% of their salaries to a voluntary retirement plan, with the employer matching their contribution. The company also pays 100% of medical and life insurance premiums. Assume that no employee's cumulative wages exceed the relevant wage bases. Payroll information for the first biweekly payroll period ending February 14 is listed below. Wages and salaries $ 1,300,000 Employee contribution to voluntary retirement plan 54,600 Medical insurance premiums paid by employer...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT