Teal Company began operations on January 2, 2019. It employs 11 individuals who work 8-hour days and are paid hourly. Each employee earns 11 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. Teal 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. Actual Hourly Wage Rate 2019: $8 2020: $9 Vacation Days Used by Each Employee 2019: $0 2020: $10 Sick Days Used by Each Employee 2019: $5 2020: $6 (a) Prepare journal entries to record transactions related to compensated absences during 2019 and 2020
Teal Company began operations on January 2, 2019. It employs 11 individuals who work 8-hour days and are paid hourly. Each employee earns 11 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. Teal 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. Actual Hourly Wage Rate 2019: $8 2020: $9 Vacation Days Used by Each Employee 2019: $0 2020: $10 Sick Days Used by Each Employee 2019: $5 2020: $6 (a) Prepare journal entries to record transactions related to compensated absences during 2019 and 2020
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter9: Working Capital
Section: Chapter Questions
Problem 9Q
Related questions
Question
Teal Company began operations on January 2, 2019. It employs 11 individuals who work 8-hour days and are paid hourly. Each employee earns 11 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.
Teal 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.
Teal 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.
Actual Hourly Wage Rate
2019: $8
2020: $9
Vacation Days Used by Each Employee
2019: $0
2020: $10
Sick Days Used by Each Employee
2019: $5
2020: $6
(a)
Prepare journal entries to record transactions related to compensated absences during 2019 and 2020. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date
|
Account Titles and Explanation
|
Debit
|
Credit
|
---|---|---|---|
2019
|
enter an account title to accrue the expense and liability for vacations
|
enter a debit amount
|
enter a credit amount
|
enter an account title to accrue the expense and liability for vacations
|
enter a debit amount
|
enter a credit amount
|
|
(To accrue the expense and liability for vacations)
|
|||
enter an account title to accrue the expense and liability for sick pay
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to accrue the expense and liability for sick pay
|
enter a debit amount
|
enter a credit amount
|
|
(To accrue the expense and liability for sick pay)
|
|||
enter an account title to record payment for compensated time when used by employees
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to record payment for compensated time when used by employees
|
enter a debit amount
|
enter a credit amount
|
|
(To record payment for compensated time when used by employees)
|
|||
2020
|
enter an account title to accrue the expense and liability for vacations
|
enter a debit amount
|
enter a credit amount
|
enter an account title to accrue the expense and liability for vacations
|
enter a debit amount
|
enter a credit amount
|
|
(To accrue the expense and liability for vacations)
|
|||
enter an account title to accrue the expense and liability for sick pay
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to accrue the expense and liability for sick pay
|
enter a debit amount
|
enter a credit amount
|
|
(To accrue the expense and liability for sick pay)
|
|||
enter an account title to record vacation time paid
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to record vacation time paid
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to record vacation time paid
|
enter a debit amount
|
enter a credit amount
|
|
(To record vacation time paid)
|
|||
enter an account title to record sick leave paid
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to record sick leave paid
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to record sick leave paid
|
enter a debit amount
|
enter a credit amount
|
|
(To record sick leave paid)
|
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub