1. State Community College, a public college, grants faculty members a one-year sabbatical leave after each seven years of service. There are no requirements for research, study or service during the compensated sabbatical leave. A particular faculty member earns $40,000 per year. Assuming that the college maintains its books and records in a manner that facilitates the preparation of the government-wide financial statements and assuming that any appropriate accruals have
1. State Community College, a public college, grants faculty members a one-year sabbatical leave after each seven years of service. There are no requirements for research, study or service during the compensated sabbatical leave. A particular faculty member earns $40,000 per year. Assuming that the college maintains its books and records in a manner that facilitates the preparation of the government-wide financial statements and assuming that any appropriate accruals have been made, what is the appropriate entry to record the employee s salary paid while on sabbatical?
a. Debit Expenditures $40,000; Credit Cash $40,000.
b. Debit Sabbatical Leave Payable $40,000; Credit Cash $40,000.
c. Debit Expenditures $40,000; Credit Cash $40,000.
d. No entry required.
2. State Community College, a public college, grants faculty members a one-year sabbatical leave after each seven years of service. There are no requirements for research, study or service during the compensated sabbatical leave. A particular faculty member earns $40,000 per year. Assuming that the college maintains its books and records in a manner that facilitates the preparation of the fund financial statements and assuming that any appropriate accruals have been made, what is the appropriate entry to record the employee s salary paid while on sabbatical?
a. Debit Expenditures $40,000; Credit Cash $40,000.
b. Debit Sabbatical Leave Payable $40,000; Credit Cash $40,000.
c. Debit Expenditures $40,000; Credit Sabbatical Leave Payable $40,000.
d. No entry required.
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