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 $160,000. Required: 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. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Round your final answer to the nearest dollar. b. How is the vacation pay reported on the company's balance sheet? When is this amount removed from the company's balance sheet?
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 $160,000. Required: 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. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Round your final answer to the nearest dollar. b. How is the vacation pay reported on the company's balance sheet? When is this amount removed from the company's balance sheet?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:crued vacation pay
Instructions
Chart of Accounts
Journal
Final Question
nstructions
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 $160,000.
Required:
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. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal
explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry
when a credit amount is entered. Round your final answer to the nearest dollar.
b. How is the vacation pay reported on the company's balance sheet? When is this amount removed from the company's balance
sheet?
29%
-4°F
F6
F7
F8
F4
F5
&
8.
Y.
Transcribed Image Text:gin
Digital University
Instructions
Journal
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. Refe
the exact wording of the account titles, CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit c
journals will automatically indent a credit entry when a credit amount is entered. Round your final answer to the nearest dollar.
JOURNAL
AC
DATE
DESCRIPTION
POST. REF.
DEBIT
CREDIT
ASSETS
Adjusting Entries
Jan. 31
Vacation Pay Expense
16,000.00
Vacation Pay Payable
160,000.00
29%
-4°F
F6
F7
F9
F10
&
6.
T.
Y.
8.
5
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