Stellar Company began operations on January 2, 2019. It employs 10 individuals who work 8-hour days and are paid hourly. Each employee earns 11 paid vacation days and 7 paid sick daysannually. Vacation days may be taken after January 15 of the year following the year in whichthey are earned. Sick days may be taken as soon as they are earned; unused sick daysaccumulate. Additional information is as follows.Actual HourlyWage Rate2019$9(a)2020$102020Vacation Days Usedby Each Employee201902020Salaries and Wages Expense10Salaries and Wages Payable.Stellar Company has chosen to accrue the cost of compensated absences at rates of pay ineffect during the period when earned and to accrue sick pay when earned.Sick Days Usedby Each Employee20202019Prepare journal entries to record transactions related to compensated absences during2019 and 2020. (If no entry is required, select "No Entry" for the account titles and enter O for theamounts. Credit account titles are automatically indented when amount is entered. Do not indent---lII.1(To accrue the expense and liability for vacations)564,8004,800

Working Note #1:— Salaries and Wages Expense for vacation days in 2019 = 10 employees×8 hours per…

Stellar Company began operations on January 2, 2019. It employs 10 individuals who work 8- hour days and are paid hourly. Each employee earns 11 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 Wage Rate 2019 $9 (a) 2020 $10 2020 Vacation Days Used by Each Employee 2019 0 2020 Salaries and Wages Expense 10 Salaries and Wages Payable Sick Days Used by Each Employee Stellar 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. 2019 (To accrue the expense and liability for vacations) 5 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 -l1..1 2020 6 4,800 4,800

Stellar Company began operations on January 2, 2019. It employs 10 individuals who work 8- hour days and are paid hourly. Each employee earns 11 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 Wage Rate 2019 $9 (a) 2020 $10 2020 Vacation Days Used by Each Employee 2019 0 2020 Salaries and Wages Expense 10 Salaries and Wages Payable Sick Days Used by Each Employee Stellar 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. 2019 (To accrue the expense and liability for vacations) 5 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 -l1..1 2020 6 4,800 4,800

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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