Homework Help is Here – Start Your Trial Now!
Business
Accounting
Prepare the journal entries to record the transactions related to vacation entitlement during 2022 and 2023. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.)

Prepare the journal entries to record the transactions related to vacation entitlement during 2022 and 2023. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

hsl.6

Swifty Limited began operations on January 2, 2022. Swifty employs 15 individuals who work eight-hour days and are paid hourly. Each employee earns 10 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: Actual Hourly Vacation Days Used Wage Rate by Each Employee Sick Days Used by Each Employee 2022 2023 2022 2023 2022 2023 $20.00 $21.00 0 9 4 5 Assume that Swifty 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. Swifty uses the following projected rates to accrue vacation time: Year in Which Vacation Time Was Earned 2022 2023 Projected Future Pay Rates Used to Accrue Vacation Pay $20.75 per hour $21.60 per hour (a) -Your answer is partially correct. Prepare the journal entries to record the transactions related to vacation entitlement during 2022 and 2023. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) late Account Titles and Explanation 122✓ Salaries and Wages Expense Vacation Wages Payable (To accrue the expense and liability for vacations) 122 No Entry No Entry 123 23 (To record vacation time paid) Salaries and Wages Expense Vacation Wages Payable (To accrue the expense and liability for vacations) Salaries and Wages Expense Vacation Wages Payable Cash To record vacation time paid) Debit 24000 0 25200 2520 25200 Credit 24000 25200 0 22,680
Transcribed Image Text:Swifty Limited began operations on January 2, 2022. Swifty employs 15 individuals who work eight-hour days and are paid hourly. Each employee earns 10 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: Actual Hourly Vacation Days Used Wage Rate by Each Employee Sick Days Used by Each Employee 2022 2023 2022 2023 2022 2023 $20.00 $21.00 0 9 4 5 Assume that Swifty 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. Swifty uses the following projected rates to accrue vacation time: Year in Which Vacation Time Was Earned 2022 2023 Projected Future Pay Rates Used to Accrue Vacation Pay $20.75 per hour $21.60 per hour (a) -Your answer is partially correct. Prepare the journal entries to record the transactions related to vacation entitlement during 2022 and 2023. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) late Account Titles and Explanation 122✓ Salaries and Wages Expense Vacation Wages Payable (To accrue the expense and liability for vacations) 122 No Entry No Entry 123 23 (To record vacation time paid) Salaries and Wages Expense Vacation Wages Payable (To accrue the expense and liability for vacations) Salaries and Wages Expense Vacation Wages Payable Cash To record vacation time paid) Debit 24000 0 25200 2520 25200 Credit 24000 25200 0 22,680
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Borrowing costs
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS