Here is the problem from the book: JWS Transport Company’s employees earn vacation time at the rate of 1 hour per 40-hour work period. The vacation pay vests immediately (that is, an employee is entitled to the pay even if employment terminates). During 2021, total salaries paid to employees equaled $413,000, including $5,000 for vacations actually taken in 2021 but not including vacations related to 2021 that will be taken in 2022. All vacations earned before 2021 were taken before January 1, 2021. No accrual entries have been made for the vacations. No overtime premium and no bonuses were paid during the period. Required: Prepare the appropriate adjusting entry for vacations earned but not taken in 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) I know the debit will be Salaries Expense and Liability-Compensated future absences for the credit account. I do not know how to figure out the dollar amount of vacations earned but not taken. I think I am missing information, but there is no other information available.
Here is the problem from the book:
JWS Transport Company’s employees earn vacation time at the rate of 1 hour per 40-hour work period. The vacation pay vests immediately (that is, an employee is entitled to the pay even if employment terminates). During 2021, total salaries paid to employees equaled $413,000, including $5,000 for vacations actually taken in 2021 but not including vacations related to 2021 that will be taken in 2022. All vacations earned before 2021 were taken before January 1, 2021. No accrual entries have been made for the vacations. No overtime premium and no bonuses were paid during the period.
Required:
Prepare the appropriate
I know the debit will be Salaries Expense and Liability-Compensated future absences for the credit account. I do not know how to figure out the dollar amount of vacations earned but not taken. I think I am missing information, but there is no other information available.
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