Mat Broderick Company began operations on January 2, 2016. It employees 9 invividuals who work 8-hour days and are paid hourly. Each employee earns 10 paid vacation days and 6 paid sick days annually. Vacation day 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: 2016-$10.00 - 2017-$11
Vacation Days Used by each employee - 2016-0 days and 2017-9 days
Sick Days Used by Each Employee - 2016 -4 days and 2017 5 days
Assume the facts above except that Matt Broderick Company has chosen not to accrue paid sick leave until used, and has chosen to accrue vacation time at expected future rates of pay without discounting. The company used the following projected rates to accrue vacation time.
yr vacation was earned - 2016 rate of pay $10.75
yr vacation was earned - 2017 rate of pay $11.60
Instructions: prepare journal entries to record transactions related to compensated absences during 2016 & 2017
Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2016 and 2017.
a) Journal entries to record transactions related to compensated absences during 2016. | ||
Account Titles and Explanation | Debit | Credit |
Salaries and Wages Expense (9 employees X $10.75/hr. X 8 hrs./day X 10 days) | $ 7,740.00 | |
Salaries and Wages Payable | $ 7,740.00 | |
To accrue the expense and liability for vacations | ||
Salaries and Wages Expense (9 employees X $10.00/hr. X 8 hrs./day X 4 days) | $ 2,880.00 | |
Cash | $ 2,880.00 | |
To record sick leave paid | ||
No Entry, since no vacation days were used | ||
To record vacation time paid | ||
Journal entries to record transactions related to compensated absences during 2017. | ||
Account Titles and Explanation | Debit | Credit |
Salaries and Wages Expense (9 Employees x 10 days x 8 hours x $11.60) | $ 8,352.00 | |
Salaries and Wages Payable | $ 8,352.00 | |
To accrue the expense and liability for vacations | ||
Salaries and Wages Expense (9 Employees x 5 days x 8 hours x $11) | $ 3,960.00 | |
Cash | $ 3,960.00 | |
To record sick leave paid | ||
Salaries and Wages expense | $ 162.00 | |
Salaries and Wages Payable (9 Employees x 9 days x 8 hours x $10.75) | $ 6,966.00 | |
Cash (9 Employees x 9 days x 8 hours x $11) | $ 7,128.00 | |
To record vacation time paid | ||
b) | ||
2016 | ||
Current liabilities | ||
Salaries and Wages Payable (9 employees X $10.75/hr. X 8 hrs./day X 10 days) | $ 7,740.00 | |
2017 | ||
Current liabilities | ||
Salaries and Wages Payable (9 employees X $10.75/hr. X 8 hrs./day X 10 days) | $ 7,740.00 | |
Less: Vacation Paid during 2017 | $ (6,966.00) | |
Add: Vacation accused during 2017 | $ 8,352.00 | |
Salaries and Wages Payable | $ 9,126.00 |
Mat Broderick Company began operations on January 2, 2016. It employees 9 invividuals who work 8-hour...
Mat Broderick Company began operations on January 2, 2016. It employees 9 invividuals who work 8-hour days and are paid hourly. Each employee earns 10 paid vacation days and 6 paid sick days annually. Vacation day 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: 2016-$10.00 - 2017-$11...
Compensated Absences Matt Broderick Company began operations on January 2, 2016. The following information was provided concerning the company's employees who are paid hourly Number of individuals employed Number of hours worked per day Paid vacation days earned annually by each employee Paid sick days earned annually by each employee 9 employees 8 hours 10 days 6 days Vacation days may be taken after January 15 of the year following the year in which they are earned. Sick days may...
Flint Company began operations on January 2, 2016. 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...
this is that i need you need information of this picture for do question E13-4 i just need exercise E13-4 E13-4 (L01) EXCEL (Compensated Absences) Assume the facts in E13-3 except that Matt Broderick Company has cher not to accrue paid sick leave until used, and has chosen to accrue vacation time at expected future rates of pay without disse ing. The company used the following projected rates to accrue vacation time. Year in which Vacation Time Was Earned 2016...
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Shamrock Company began operations on January 2, 2016. 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 fallows. Vacation Days Used by Each Employee 2016 2017...