Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31,2019 and 2020.20192020Vacation Wages Payable38884968Sick Pay Wages Payable864$%24%24%24%24 Ayayai Company began operations on January 2, 2019. It employs 9 individuals who work 8-hour days and are paid hourly. Eachemployee earns 9 paid vacation days and 7 paid sick days annually. Vacation days may be taken after January 15 of the year followingthe year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additionalinformation is as follows.Actual HourlyVacation Days UsedSick Days UsedWage Rateby Each Employeeby Each Employee201920202019202020192020$6$7856Ayayai Company has chosen to accrue the cost of compensated absences at rates of pay in effect during the period when earned andto accrue sick pay when earned.

2 2019 2020 Vacation Wages Payable $3,888 $4,968 Sick Wages Payable $864 $1,512…

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 2$ 3888 2$ 4968 Sick Pay Wages Payable 2$ 864 $

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 2$ 3888 2$ 4968 Sick Pay Wages Payable 2$ 864 $

PAYROLL ACCT.,2019 ED.(LL)-TEXT

19th Edition

ISBN:9781337619783

Author:BIEG

Publisher:BIEG

Chapter6: Analysing And Journalizing Payroll

Section: Chapter Questions

Problem 10PA

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Question

100%

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
3888
4968
Sick Pay Wages Payable
864
$
%24
%24
%24
%24

Ayayai Company began operations on January 2, 2019. 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
Vacation Days Used
Sick Days Used
Wage Rate
by Each Employee
by Each Employee
2019
2020
2019
2020
2019
2020
$6
$7
8
5
6
Ayayai 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.

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