Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2019 and 2020.
Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2019 and 2020.
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter7: Employee Earnings And Deductions
Section: Chapter Questions
Problem 3PA
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Question
![Pearl Company began operations on January 2, 2019. It employs 11 individuals who work 8-hour days and are paid hourly. Each
employee earns 11 paid vacation days and 8 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
$9
2020
$10
Vacation Days Used
by Each Employee
2019
2020
Vacation Wages Payable $
10
Sick Pay Wages Payable
Sick Days Used
by Each Employee
2019
6
Pearl 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.
2020
Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31,
2019 and 2020.
2019
7
$
+A
2020](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe0037993-fc06-4e9a-b4ca-eff80ad003fe%2Fc381e9d7-ff05-4ab4-9cca-0136d474bb4c%2Fnz3mve6_processed.png&w=3840&q=75)
Transcribed Image Text:Pearl Company began operations on January 2, 2019. It employs 11 individuals who work 8-hour days and are paid hourly. Each
employee earns 11 paid vacation days and 8 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
$9
2020
$10
Vacation Days Used
by Each Employee
2019
2020
Vacation Wages Payable $
10
Sick Pay Wages Payable
Sick Days Used
by Each Employee
2019
6
Pearl 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.
2020
Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31,
2019 and 2020.
2019
7
$
+A
2020
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