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 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
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 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
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter9: Payroll Accounting: Employer Taxes And Reports
Section: Chapter Questions
Problem 1CP
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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
Compute the amounts of any liability for compensated absences that should be reported on the
|
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 |
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