On September 1, 2022, Eve’s Fantastic Tutoring hired a student tutor and promised to pay a monthly salary of $3000. As of September 30, 2022, which is the fiscal year end of Eve’s Fantastic Tutoring, the company has used labor of the student for a month. According the company’s policy, tutor’s salary of $3000 for September will be paid on October 5, 2022. GAAP requires the salary expense of $3000 to be recorded by the company on October 5, 2022. True or false

On September 1, 2022, Eve’s Fantastic Tutoring hired a student tutor and promised to pay a monthly salary of $3000. As of September 30, 2022, which is the fiscal year end of Eve’s Fantastic Tutoring, the company has used labor of the student for a month. According the company’s policy, tutor’s salary of $3000 for September will be paid on October 5, 2022. GAAP requires the salary expense of $3000 to be recorded by the company on October 5, 2022. True or false

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter9: Working Capital

Section: Chapter Questions

Problem 9Q

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Teal Company began operations on January 2, 2019. It employs 11 individuals who work 8-hour days and are paid hourly. Each employee earns 11 paid vacation days and 7 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. Teal 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. Actual Hourly Wage Rate 2019: $8 2020: $9 Vacation Days Used by Each Employee 2019: $0 2020: $10 Sick Days Used by Each Employee 2019: $5 2020: $6 (a) 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…
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