Question

On January 1, 2016, Poplar Fabricators Corporation agreed to grant its employees two weeks' vacation each year, with the stipulation that vacations earned each year can be taken the following year. For the year ended December 31, 2016, Poplar Fabricators' employees each earned an average of $900 per week. Seven hundred vacation weeks earned in 2016 were not taken during 2016. Required: 1. Prepare the appropriate adjusting entry for vacations earned but not taken in 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer 1

Required 1 Event / General Journal / Debit Credil ***Wages expenses. 9630,000 Liability-compensetele $630,000 fulenie absences Explanations : * Wages expenses = ($900 x 700) >$630,000 1 Requered a Levend / General Tournal Debit Credit fi liability compensated $630,000 fulone absences klages expenses $ 31,031,500 1$.33,663,500 Explanations : * Waqes expenses $930,000000 +(54. X $630,000.) = ($ 3.,000,000 + $ 31,500) 34,031, 500 * Cash on weeges payable= $630,000 +$ 38,03 ,500) =$ 31,667; 500 Cash