A company’s salaried employees earn two weeks’ vacation per year. The company estimated and must expense $9,000 of accrued vacation benefits for the year. (a) Prepare the year-end adjusting entry to record accrued vacation benefits. (b) Prepare the entry on May 1 of the next year when an employee takes a one-week vacation and is paid $450 cash for that week.

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter9: Current Liabilities And Contingent Obligations
Section: Chapter Questions
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A company’s salaried employees earn two weeks’ vacation per year. The company estimated and
must expense $9,000 of accrued vacation benefits for the year. (a) Prepare the year-end adjusting entry to
record accrued vacation benefits. (b) Prepare the entry on May 1 of the next year when an employee takes
a one-week vacation and is paid $450 cash for that week.

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