Homework Help is Here – Start Your Trial Now!
Business
Accounting
Sage Company began operations on January 2, 2019. It employs 8 individuals who work 8-hour days and are paid hourly. Each employee earns 9 paid vacation days and 7 paid sick days annually. Vacation days may be taken after January 15 of the year followin 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. Vacation Days Actual Hourly Wage Rate Sick Days Used Used by Each Employee by Each Employee 2019 2020 2019 2020 2019 2020 $7 $8 5 Sage 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 2019 and 2020. (Of 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) Date Account Titles and Explanation Debit Credit 2019 Salaries and Wages Expense 4536 4534 Date Account Titles and Explanation Debit Credit 2019 Salaries and Wages Expense 4536 4536 Salaries and Wages Payable (To accrue the expense and liability for vacations) Salaries and Wages Expense 3528 Salaries and Wages Payable 3528 (To accrue the expense and liability for sick pay)

Sage Company began operations on January 2, 2019. It employs 8 individuals who work 8-hour days and are paid hourly. Each employee earns 9 paid vacation days and 7 paid sick days annually. Vacation days may be taken after January 15 of the year followin 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. Vacation Days Actual Hourly Wage Rate Sick Days Used Used by Each Employee by Each Employee 2019 2020 2019 2020 2019 2020 $7 $8 5 Sage 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 2019 and 2020. (Of 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) Date Account Titles and Explanation Debit Credit 2019 Salaries and Wages Expense 4536 4534 Date Account Titles and Explanation Debit Credit 2019 Salaries and Wages Expense 4536 4536 Salaries and Wages Payable (To accrue the expense and liability for vacations) Salaries and Wages Expense 3528 Salaries and Wages Payable 3528 (To accrue the expense and liability for sick pay)

College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter7: Employee Earnings And Deductions
Section: Chapter Questions
Problem 3PA
See similar textbooks
icon
Related questions
Question
Please help me
Sage Company began operations on January 2, 2019. It employs 8 individuals who work 8-hour days and are paid hourly. Each employee earns 9 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. Vacation Days Actual Hourly Sick Days Used Used Wage Rate by Each Employee by Each Employee 2019 2020 2019 2020 2019 2020 $7 $8 5 6. Sage Company has chosen to accrue the cost of compensated absences at rates of pay in effect during the period when eared and to accrue sick pay when earned. 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 O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 2019 Salaries and Wages Expense 4536 4534 Date Account Titles and Explanation Debit Credit 2019 Salaries and Wages Expense 4536 4536 Salaries and Wages Payable (To accrue the expense and liability for vacations) Salaries and Wages Expense 3528 3528 Salaries and Wages Payable (To accrue the expense and liability for sick pay) Salaries and Wages Payable 2520 Cash 2520 (To record payment for compensated time when used by employees) 2020 Salaries and Wages Expense 5184 Salaries and Wages Payable 5184 (To accrue the expense and liability for vacations)
Transcribed Image Text:Sage Company began operations on January 2, 2019. It employs 8 individuals who work 8-hour days and are paid hourly. Each employee earns 9 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. Vacation Days Actual Hourly Sick Days Used Used Wage Rate by Each Employee by Each Employee 2019 2020 2019 2020 2019 2020 $7 $8 5 6. Sage Company has chosen to accrue the cost of compensated absences at rates of pay in effect during the period when eared and to accrue sick pay when earned. Prepare journal entries to record transactions related to compensated absences during 2019 and 2020. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 2019 Salaries and Wages Expense 4536 4534 Date Account Titles and Explanation Debit Credit 2019 Salaries and Wages Expense 4536 4536 Salaries and Wages Payable (To accrue the expense and liability for vacations) Salaries and Wages Expense 3528 3528 Salaries and Wages Payable (To accrue the expense and liability for sick pay) Salaries and Wages Payable 2520 Cash 2520 (To record payment for compensated time when used by employees) 2020 Salaries and Wages Expense 5184 Salaries and Wages Payable 5184 (To accrue the expense and liability for vacations)
2020 Salaries and Wages Expense 5184 Salaries and Wages Payable 5184 (To accrue the expense and liability for vacations) Salaries and Wages Expense 4032 Salaries and Wages Payable 4032 (To accrue the expense and liability for sick pay) Salaries and Wages Expense 576 Salaries and Wages Payable 4032 Cash 4608 (To record vacation time paid) Salaries and Wages Expense Salaries and Wages Payable Cash 3528 Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31. 2019 and 2020. 2019 2020 Vacation Wages Payable %24 2$ Sick Pay Wages Payable %24
Transcribed Image Text:2020 Salaries and Wages Expense 5184 Salaries and Wages Payable 5184 (To accrue the expense and liability for vacations) Salaries and Wages Expense 4032 Salaries and Wages Payable 4032 (To accrue the expense and liability for sick pay) Salaries and Wages Expense 576 Salaries and Wages Payable 4032 Cash 4608 (To record vacation time paid) Salaries and Wages Expense Salaries and Wages Payable Cash 3528 Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31. 2019 and 2020. 2019 2020 Vacation Wages Payable %24 2$ Sick Pay Wages Payable %24
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 7 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Market Efficiency
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.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
PAYROLL ACCT., 2019 ED.(LL)-TEXT
PAYROLL ACCT., 2019 ED.(LL)-TEXT
Accounting
ISBN:
9781337619783
Author:
BIEG
Publisher:
CENGAGE L
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS