A Company grants all employees ten (10) days paid vacation for each year of employment. Unused vacation time can be accumulated and carried forward to succeeding years and will be paid at the salaries in effect when vacations are taken or when employment is terminated. During 2021, there was no employee turnover. After the government announced a salary adjustment on labor day, the company granted a 10% across the board salary increase to all employees effective on May 1, 2021. Information relating to the year ended December 31, 2021 follows: · Liability for vacation pay, January 1- P105,000 · Accrued vacation taken by employees from January 1 to May 1- P38,000 · Vacations earned for work in 2021, adjusted to increased rates- P64,000 How much is the vacation pay expense for the year ended December 31, 2021 and the amount of liability for vacation pay reported in its December 31, 2021 statement of financial position, respectively?
A Company grants all employees ten (10) days paid vacation for each year of employment. Unused vacation time can be accumulated and carried forward to succeeding years and will be paid at the salaries in effect when vacations are taken or when employment is terminated. During 2021, there was no employee turnover. After the government announced a salary adjustment on labor day, the company granted a 10% across the board salary increase to all employees effective on May 1, 2021. Information relating to the year ended December 31, 2021 follows:
· Liability for vacation pay, January 1- P105,000
· Accrued vacation taken by employees from January 1 to May 1- P38,000
· Vacations earned for work in 2021, adjusted to increased rates- P64,000
How much is the vacation pay expense for the year ended December 31, 2021 and the amount of liability for vacation pay reported in its December 31, 2021
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