Dana Company has 25 employees who work 8-hour days and are paid hourly. On January 1, 2021, the company began a program of granting its employees 9 days of paid vacation each year. Vacation days earned in 2021 may first be taken on January 1, 2022. Information related to these employees is as follows: Hourly Year Wages Vacation Days Earned by Each Employee Vacation Days Used Each Employee 2021 $25.80 0 2022 27.00 8 9 9 Dana Company has chosen to accrue the liability for compensated absences at the current rates of pay in effect when the compensated time is earned. What is the balance of liability for compensated absences that should be reported on December 31, 2022? OA. $53,760. O B. $92,880. O C. $97,200. O D. $48,600.

Dana Company has 25 employees who work 8-hour days and are paid hourly. On January 1, 2021, the company began a program of granting its employees 9 days of paid vacation each year. Vacation days earned in 2021 may first be taken on January 1, 2022. Information related to these employees is as follows: Hourly Year Wages Vacation Days Earned by Each Employee Vacation Days Used Each Employee 2021 $25.80 0 2022 27.00 8 9 9 Dana Company has chosen to accrue the liability for compensated absences at the current rates of pay in effect when the compensated time is earned. What is the balance of liability for compensated absences that should be reported on December 31, 2022? OA. $53,760. O B. $92,880. O C. $97,200. O D. $48,600.

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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