13.3 (LO 1) (Compensated Absences) Broderick Company began operations on January 2, 2019. It employs 9 individuals who work 8-hour days and are paid hourly. Each employee earns 10 paid vacation days and 6 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. Vacation Days Used by Each Employee Sick Days Used by Each Employee 2019 2020 2019 2020 2019 2020 $10 $11 0 9 4 5 Broderick 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. instructions a. Prepare journal entries to record transactions related to compensated absences during 2019 and 2020. b. Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2019 and 2020. Actual Hourly Wage Rate
13.3 (LO 1) (Compensated Absences) Broderick Company began operations on January 2, 2019. It employs 9 individuals who work 8-hour days and are paid hourly. Each employee earns 10 paid vacation days and 6 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. Vacation Days Used by Each Employee Sick Days Used by Each Employee 2019 2020 2019 2020 2019 2020 $10 $11 0 9 4 5 Broderick 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. instructions a. Prepare journal entries to record transactions related to compensated absences during 2019 and 2020. b. Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2019 and 2020. Actual Hourly Wage Rate
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter7: Employee Earnings And Deductions
Section: Chapter Questions
Problem 3PA
Related questions
Question
![E13.3 (LO 1) (Compensated Absences) Broderick Company began operations on January 2, 2019. It employs 9 individuals who work 8-hour days and are paid hourly. Each
employee earns 10 paid vacation days and 6 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.
Sick Days Used
by Each Employee
2019
2020
2020
2019
2020
$10
$11
9
4
5
Broderick 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.
Instructions
a. Prepare journal entries to record transactions related to compensated absences during 2019 and 2020.
b. Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2019 and 2020.
Actual Hourly
Wage Rate
Vacation Days Used
by Each Employee
2019
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe0037993-fc06-4e9a-b4ca-eff80ad003fe%2Fbd4053ba-fc07-424a-aecd-50b19954c69e%2Fdslycmo_processed.png&w=3840&q=75)
Transcribed Image Text:E13.3 (LO 1) (Compensated Absences) Broderick Company began operations on January 2, 2019. It employs 9 individuals who work 8-hour days and are paid hourly. Each
employee earns 10 paid vacation days and 6 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.
Sick Days Used
by Each Employee
2019
2020
2020
2019
2020
$10
$11
9
4
5
Broderick 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.
Instructions
a. Prepare journal entries to record transactions related to compensated absences during 2019 and 2020.
b. Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2019 and 2020.
Actual Hourly
Wage Rate
Vacation Days Used
by Each Employee
2019
0
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