Cheyenne Company began operations on January 2, 2019. It employs 12 individuals who work 8-hour days and are paid hourly. Eachemployee earns 11 paid vacation days and 7 paid sick days annually. Vacation days may be taken after January 15 of the year followingthe year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additionalinformation is as follows.Actual HourlyWage Rate2019 2020$7$8Vacation Days Usedby Each Employee20201020190Sick Days Usedby Each Employee2019202056Cheyenne Company has chosen to accrue the cost of compensated absences at rates of pay in effect during the period when earnedand to accrue sick pay when earned. (To accrue the expense and liability for sick pay)Salaries and Wages ExpenseSalaries and Wages PayableCash(To record vacation time paid)Salaries and Wages ExpenseSalaries and Wages Payablecash(To record sick leave paid)1056739284483840

Definition of Accrued liabilitiesThe term "accrued liability" refers to an expense incurred but not…

Cheyenne Company began operations on January 2, 2019. It employs 12 individuals who work 8-hour days and are paid hourly. Each employee earns 11 paid vacation days and 7 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. Actual Hourly Wage Rate 2019 $7 2020 $8 Vacation Days Used by Each Employee 2019 2020 0 10 Sick Days Used by Each Employee 2019 2020 5 Cheyenne 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.

Cheyenne Company began operations on January 2, 2019. It employs 12 individuals who work 8-hour days and are paid hourly. Each employee earns 11 paid vacation days and 7 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. Actual Hourly Wage Rate 2019 $7 2020 $8 Vacation Days Used by Each Employee 2019 2020 0 10 Sick Days Used by Each Employee 2019 2020 5 Cheyenne 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Bush Enterprises International BEI hires 10,000 employees. Each employee earns twenty days of paid vacation per calendar year. Up to five days of this may be carried forward and taken in the following vear but cannot be carried forward any further. Employees are not paid for any vacations they do not take. As at December 31, 2022, 9,130 employees had used their full vacation entitlement for 2022. The remaining employees are carrying forward an average of 3 days each and they are all expected to use these vacation days. Half of the employee group earn $300 per day and the other half work 8 hour days and earn $15 per hour and this is representative of those who still have leftover vacation earned. What amount of liability for accrued vacation pay should appear in the company's balance sheet at December 31, 2022 ? a. $548,100 b. $783.000 c. $913,500 d. $313,200 e. None of the above Plz answer fast without plagiarism
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