Question

Exercise 13-03 (Part Level Submission) Pearl Company began operations on January 2, 2019. It employs 11 individuals who work 8-hour days and are paid hourly. Each employee earns 9 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 Wage Rate Vacation Days Used by Each Employee Sick Days Used by Each Employee 2019 2020 2019 2020 2019 2020 $10 $11 0 8 4 5 Pearl Company has chosen to accrue the cost of compensated absences at rates of pay in effect during the period when earned and to accrue sick pay when earned. (b) Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2019 and 2020. 2019 2020 Vacation Wages Payable $enter a dollar amount $enter a dollar amount Sick Pay Wages Payable $enter a dollar amount $enter a dollar amount SHOW LIST OF ACCOUNTS LINK TO TEXT Attempts: 0 of 3 used SAVE FOR LATER SUBMIT ANSWER

Answer 1

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		Year 2019		Year 2019
		Vacation Wages Payable	Sick pay wages payable	Vacation Wages Payable	Sick pay wages payable
January 1 Balance		$                                                     -	$                                                   -	$                                              7,920	$                                            1,760
Add: Accrued		$                                              7,920	$                                            5,280	$                                              8,712	$                                            5,808
Less: Paid		$                                                     -	$                                         (3,520)	$                                            (7,040)	$                                         (4,664)
December 31, Balance		$                                              7,920	$                                            1,760	$                                              9,592	$                                            2,904
11 Employees*8 Hour*$10 per hour*9		$                                              7,920
11 Employees*8 Hour*$10 per hour*6 Total		$                                              5,280
11 Employees*8 Hour*$10 per hour*4 Paid		$                                              3,520
11 Employees*8 Hour*$10 per hour*2 Remaining		$                                              1,760
11 Employees*8 Hour*$10 per hour*(9-8)		$                                                  880
11 Employees*8 Hour*$11 per hour*9		$                                              8,712
		$                                              9,592
11 Employees*8 Hour*$11 per hour*6		$                                              5,808
11 Employees*8 Hour*$11 per hour*(6+6-4-5)		$                                              2,904