Question

PLEASE PUT SOLUTION IN THE SAME FORMAT AS THE IMAGE. THANK YOU!

Exercise 13-4 (Algo) Pald future absences [LO13-3] JWS Transport Company's employees earn vacation time at the rate of 1 hour per 40-hour work period. The vacation pay vests immediately (that is, an employee is entitled to the pay even if employment terminates). During 2021, total salaries paid to employees equaled $421.000, including $5,000 for vacations actually taken in 2021 but not including vacations related to 2021 that will be taken in 2022. All vacations earned before 2021 were taken before January 1, 2021. No accrual entries have been made for the vacations No overtime premium and no bonuses were paid during the period. Required: Prepare the appropriate adjusting entry for vacations earned but not taken in 2021. (If no entry is requlred for a transaction/event, select "No journal entry requlred" In the first account field.) View transaction list Journal entry worksheet Record the adjusting entry for vacations earned but not taken in 2021. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal

Answer 1

Answer-The adjusting Entry for vacations earned but not taken in 2021:-

Event	General Journal	Debit	Credit
1	Vacation Benefit Expenses (10,400-5,000)	5,400
	Vacation Benefits Payable		5,400
	(To record for vacations earned but not taken in 2021)

Working Note:-

Total vacation time benefit = 1/40 of the wages paid to employee

In 2021, the total wages earned excluded benefit paid

= 421,000 - 5,000

= 416,000

Actual vacation benefit

= 416,000 * 1/40

= 10,400

Kindly give me thumbs up if you like my answer...Thanks!!!