Larkspur Company began operations on January 2, 2019. It employs 9 individuals who work 8-hour days and are paid hourly. Each employee earns 10 paid vacation days and 6 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 HourlyWage Rate Vacation Days Usedby Each Employee Sick Days Usedby Each Employee 2019 2020 2019 2020 2019 2020 $ 8 $ 9 0 9 4 5 Larkspur 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. Prepare journal entries to record transactions related to compensated absences during 2019 and 2020. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Larkspur Company began operations on January 2, 2019. It employs 9 individuals who work 8-hour days and are paid hourly. Each employee earns 10 paid vacation days and 6 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 |
Vacation Days Used
by Each Employee |
Sick Days Used
by Each Employee |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
2019
|
2020
|
2019
|
2020
|
2019
|
2020
|
|||||||
| $ 8 | $ 9 | 0 | 9 | 4 | 5 |
Larkspur 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.
Prepare
Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2019 and 2020.
|
2019
|
2020
|
|||
|---|---|---|---|---|
|
Vacation Wages Payable
|
$ enter a dollar amount | $ enter a dollar amount | ||
|
Sick Pay Wages Payable
|
$ enter a dollar amount | $ enter a dollar amount |
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