Blossom Co. began operations on January 2, 2020. It employs 13 people who work 8-hour days. Each employee earns 10 paid vacation days annually. Vacation days may be taken after January 10 of the year following the year in which they are earned. The average hourly wage rate was $18 in 2020 and $19.00 in 2021. The average vacation days used by each employee in 2021 was 9. Blossom Co. accrues the cost of compensated absences at rates of pay in effect when earned. Prepare journal entries to record the transactions related to paid vacation days during 2020 and 2021
Blossom Co. began operations on January 2, 2020. It employs 13 people who work 8-hour days. Each employee earns 10 paid vacation days annually. Vacation days may be taken after January 10 of the year following the year in which they are earned. The average hourly wage rate was $18 in 2020 and $19.00 in 2021. The average vacation days used by each employee in 2021 was 9. Blossom Co. accrues the cost of compensated absences at rates of pay in effect when earned.
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Paid leave is the leave which is provided to employee in which the employees are eligible to get pay even if they had taken leave for that day. There are limited paid leave up to 2 days in a month. It is a tax-deductible expense of the employer.
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