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 $20.00 $22.00 2023 Date 2022 Year in Which Vacation Time Was Earned 2023 Vacation Days Used by Each Employee 2022 2022 2023 0 2023 8 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: Sick Days Used by Each Employee 2022 3 utomatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is quired, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Salaries and Wages Expense 2023 4 Projected Future Pay Rates Used to Accrue Vacation Pay $20.75 per hour $22.60 per hour Account Titles and Explanation Salaries and Wages Expense Debit Credit
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 $20.00 $22.00 2023 Date 2022 Year in Which Vacation Time Was Earned 2023 Vacation Days Used by Each Employee 2022 2022 2023 0 2023 8 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: Sick Days Used by Each Employee 2022 3 utomatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is quired, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Salaries and Wages Expense 2023 4 Projected Future Pay Rates Used to Accrue Vacation Pay $20.75 per hour $22.60 per hour Account Titles and Explanation Salaries and Wages Expense Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
$20.00 $22.00
2023
Date
2022
Year in which Vacation Time
Was Earned
2023
Vacation Days Used
by Each Employee
2022
2022
2023
0
2023
8
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:
Sick Days Used
by Each Employee
2022
3
utomatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is
quired, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.)
Salaries and Wages Expense
Salaries and Wages Expense
2023
Projected Future Pay Rates Used
to Accrue Vacation Pay
$20.75 per hour
$22.60 per hour
Account Titles and Explanation
4
Debit
Credit
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