Monty Company began operations on January 2, 2019. It employs 12 individuals who work 8-hour days and are paid hourly. Each employee earns 13 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 below: Actual Hourly Wage Rate 2019 2020 $ 13 $ 14 Vacation Days Used by Each Employee 2019 2020 $ - $ 12 Sick Days Used by Each Employee 2019 2020 $ 5 $
Monty Company began operations on January 2, 2019. It employs 12 individuals who work 8-hour days and are paid hourly. Each employee earns 13 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 below:
|
Actual Hourly Wage Rate |
|
|
2019 |
2020 |
| $ 13 | $ 14 |
|
Vacation Days Used by Each Employee |
|
|
2019 |
2020 |
| $ - | $ 12 |
|
Sick Days Used by Each Employee |
|
|
2019 |
2020 |
| $ 5 | $ 7 |
Monty Company has chosen not to accrue paid sick leave until used, and has chosen to accrue vacation time at expected future rates of pay without discounting. The company used the following projected rates to accrue vacation time.
|
Year in Which Vacation
Time Was Earned |
Projected Future Pay Rates
Used to Accrue Vacation Pay |
|
|---|---|---|
|
2019
|
$13.98 | |
|
2020
|
15.08 |
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