Pronghorn Company began operations on January 2, 2025. It employs 12 individuals who work 8-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 Vacation Days Used by Each Employee Sick Days Used by Each Employee 2025 2026 2025 2026 2025 2026 $6 $7 Pronghorn 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. Prepare journal entries to record transactions related to compensated absences during 2025 and 2026. (If no entry is required. select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation 2025 1 (To accrue the expense and liability for vacations) Debit Credit (To accrue the expense and liability for sick pay) 2026 ज (To accrue the expense and liability for sick pay) (To record payment for compensated time when used by employees) (To accrue the expense and liability for vacations) (To accrue the expense and liability for sick pay)
Pronghorn Company began operations on January 2, 2025. It employs 12 individuals who work 8-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 Vacation Days Used by Each Employee Sick Days Used by Each Employee 2025 2026 2025 2026 2025 2026 $6 $7 Pronghorn 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. Prepare journal entries to record transactions related to compensated absences during 2025 and 2026. (If no entry is required. select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation 2025 1 (To accrue the expense and liability for vacations) Debit Credit (To accrue the expense and liability for sick pay) 2026 ज (To accrue the expense and liability for sick pay) (To record payment for compensated time when used by employees) (To accrue the expense and liability for vacations) (To accrue the expense and liability for sick pay)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Pronghorn Company began operations on January 2, 2025. It employs 12 individuals who work 8-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
Sick Days Used
by Each Employee
Vacation Days Used
Wage Rate
by Each Employee
2025
2026
2025
2026
2025
2026
$6
$7
0
9
5
Pronghorn 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.
Prepare journal entries to record transactions related to compensated absences during 2025 and 2026. (If no entry is required,
select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is
entered. Do not indent manually. List all debit entries before credit entries.)
Date Account Titles and Explanation
2025
Debit
Credit
(To accrue the expense and liability for vacations)
(To accrue the expense and liability for sick pay)
ست
2026
(To accrue the expense and liability for sick pay)
(To record payment for compensated time when used by
employees)
اس
Б
(To accrue the expense and liability for vacations)
b
(To accrue the expense and liability for sick pay)
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