Charlet Company has 35 employees who work 8 hour a day and are paid hourly. On January 1, 2019, the company began a program of granting its employees 10 days paid vacation each year. Vacation days earned in 2019 may first be taken on January 1, 2020. Information relative to these employees is as follows: Year Hourly Wages Vacation Days Earned by Each Employee Vacation Days Used by Each Employee 2019 P 12.90 10 None 2020 13.50 10 8 2021 14.25 10 10 Charlet has chosen to accrue the liability for compensated absences at the current rates of pay in effect when the compensated time is carried. 1. What is the amount of expense relative to compensated absences that should be reported on Charlet’s income statement for 2020? 2. What is the amount of the accrued liability for compensated absences that should be reported at December 31, 202
Charlet Company has 35 employees who work 8 hour a day and are paid hourly. On January 1, 2019, the company began a program of granting its employees 10 days paid vacation each year. Vacation days earned in 2019 may first be taken on January 1, 2020. Information relative to these employees is as follows: Year Hourly Wages Vacation Days Earned by Each Employee Vacation Days Used by Each Employee 2019 P 12.90 10 None 2020 13.50 10 8 2021 14.25 10 10 Charlet has chosen to accrue the liability for compensated absences at the current rates of pay in effect when the compensated time is carried. 1. What is the amount of expense relative to compensated absences that should be reported on Charlet’s income statement for 2020? 2. What is the amount of the accrued liability for compensated absences that should be reported at December 31, 202
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
Problem 6MC
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Charlet Company has 35 employees who work 8 hour a day and are paid hourly. On January 1, 2019, the company began a program of granting its employees 10 days paid vacation each year. Vacation days earned in 2019 may first be taken on January 1, 2020. Information relative to these employees is as follows:
Year Hourly Wages Vacation Days Earned by Each
Employee Vacation Days Used by Each
Employee
2019 P 12.90 10 None
2020 13.50 10 8
2021 14.25 10 10
Charlet has chosen to accrue the liability for compensated absences at the current rates of pay in effect when the compensated time is carried.
Year Hourly Wages Vacation Days Earned by Each
Employee Vacation Days Used by Each
Employee
2019 P 12.90 10 None
2020 13.50 10 8
2021 14.25 10 10
Charlet has chosen to accrue the liability for compensated absences at the current rates of pay in effect when the compensated time is carried.
1. What is the amount of expense relative to compensated absences that should be reported on Charlet’s income statement for 2020?
2. What is the amount of the accrued liability for compensated absences that should be reported at December 31, 2021?
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