Pina Colada Limited began operations on January 2, 2022. Pina Colada employs 9 individuals who work eight-hour days and are paidhourly. Each employee earns 10 paid vacation days and 6 paid sick days annually. Vacation days may be taken after January 15 of theyear 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 Rate20222023$20.00 $22.002022Vacation Days Usedby Each Employee20232022Year in Which Vacation TimeWas Earned0Liability for sick payLiability for vacation payAssume that Pina Colada Limited has chosen not to recognize paid sick leave until it is used, and has chosen to accrue vacation time atexpected future rates of pay without discounting. Pina Colada uses the following projected rates to accrue vacation time:tA$2023tA8$Sick Days Usedby Each EmployeeCalculate the amounts of any liability for vacation pay and sick days that should be reported on the SFP at December 31, 2022 and2023. (Do not leave any answer field blank. Enter O for amounts.)2022320222023Projected Future Pay Rates Usedto Accrue Vacation Pay$20.75 per hour$22.60 per hour414,940|$LALA2023

Vacation pay and sick pay for un-used leave is recorded as a liability. Business entity pay such an…

Pina Colada Limited began operations on January 2, 2022. Pina Colada employs 9 individuals who work eight-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 2022 2023 $20.00 $22.00 2022 Vacation Days Used by Each Employee 2023 2022 Year in Which Vacation Time Was Earned 0 Liability for sick pay Liability for vacation pay 2023 Assume that Pina Colada Limited has chosen not to recognize paid sick leave until it is used, and has chosen to accrue vacation time at expected future rates of pay without discounting. Pina Colada uses the following projected rates to accrue vacation time: $ 8 $ Sick Days Used by Each Employee 2022 3 Calculate the amounts of any liability for vacation pay and sick days that should be reported on the SFP at December 31, 2022 and 2023. (Do not leave any answer field blank. Enter O for amounts.) 2022 2023 Projected Future Pay Rates Used to Accrue Vacation Pay $20.75 per hour $22.60 per hour 4 14,940 | $ $ 2023

Pina Colada Limited began operations on January 2, 2022. Pina Colada employs 9 individuals who work eight-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 2022 2023 $20.00 $22.00 2022 Vacation Days Used by Each Employee 2023 2022 Year in Which Vacation Time Was Earned 0 Liability for sick pay Liability for vacation pay 2023 Assume that Pina Colada Limited has chosen not to recognize paid sick leave until it is used, and has chosen to accrue vacation time at expected future rates of pay without discounting. Pina Colada uses the following projected rates to accrue vacation time: $ 8 $ Sick Days Used by Each Employee 2022 3 Calculate the amounts of any liability for vacation pay and sick days that should be reported on the SFP at December 31, 2022 and 2023. (Do not leave any answer field blank. Enter O for amounts.) 2022 2023 Projected Future Pay Rates Used to Accrue Vacation Pay $20.75 per hour $22.60 per hour 4 14,940 | $ $ 2023

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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