JWS Transport Company’s employees earn vacation time at the rate of 1 hour per 40-hour work period. Thevacation pay vests immediately (that is, an employee is entitled to the pay even if employment terminates). During2018, total wages paid to employees equaled $404,000, including $4,000 for vacations actually taken in 2018but not including vacations related to 2018 that will be taken in 2019. All vacations earned before 2018 weretaken before January 1, 2018. No accrual entries have been made for the vacations. No overtime premium and nobonuses were paid during the period.Required:Prepare the appropriate adjusting entry for vacations earned but not taken in 2018.
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
2018, total wages paid to employees equaled $404,000, including $4,000 for vacations actually taken in 2018
but not including vacations related to 2018 that will be taken in 2019. All vacations earned before 2018 were
taken before January 1, 2018. No accrual entries have been made for the vacations. No overtime premium and no
bonuses were paid during the period.
Required:
Prepare the appropriate
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