A business provides its employees with varying amounts of vacation per year, depending on the length of employment. The estimated amount of the current year's vacation pay is $58,200. a. Journalize the adjusting entry required on January 31, the end of the first month of the current year, to record the accrued vacation pay. If an amount box does not require an entry, leave it blank.                 b.  How is the vacation pay reported on the company's balance sheet?  , unless employees are allowed to accumulate their vacation pay for use in future years.     When is this amount removed from the company's balance sheet?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A business provides its employees with varying amounts of vacation per year, depending on the length of employment. The estimated amount of the current year's vacation pay is $58,200.

a. Journalize the adjusting entry required on January 31, the end of the first month of the current year, to record the accrued vacation pay. If an amount box does not require an entry, leave it blank.

       
       

b.  How is the vacation pay reported on the company's balance sheet?

 , unless employees are allowed to accumulate their vacation pay for use in future years.

 

 

When is this amount removed from the company's balance sheet?

 

 

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