Question

Matt Broderick Company began operations on January 2, 2013. 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 Vacation Days Used Sick Days Used
Wage Rate by Each Employee by Each Employee
2013 2014 2013 2014 2013 2014
$10 $11 0 9 4 5

In this question I know the answer, but I still do not know how the answer of this part figured out.

144 2014 Salaries and Wages Expense ($3,960 - $3,816) Salaries and Wages Payable (9employees 8hoursx3 days $11) + (9 employees 8hours x2 days $ 10) Cash (9employees 8hoursx5 daysx$11) (To record sick leave paid) 3,816 3,960

for the salaries and wages payable, why should we calculate $11 for 3 days and $10 for 2 days.

In the chart, it only shows 5 sick days on 2014. Can someone help me figure out why it should be calculated like that?

Answer 1

As per information provided, each employee gets 6 sick leaves annually, and also unused sick days accumulate.

Since only 4 sick leaves were used in 2013 out of leaves, 2 sick leaves accumulated and carried forward, but expense for all 6 leaves must have been provided in 2013 at the rate of $10, by crediting Salaries and Wages Payable.

And 5 leaves were used in 2014, which means that 2 leaves accumulated from 2013 were used and 3 leaves from 2014 were used.

Therefore Salaries and wages payable is debited as follows
for 2013 accumulated leaves = 9 x 8 x 2 x $10
for 2014 leaves = 9 x 8 x 3 x $11

And difference for ($11-$10) i.e. $1 for 2 leaves accumulated from 2013 is recorded as expense