Teal Company began operations on January 2, 2019. It employs 11 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. Teal 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. Actual Hourly Wage Rate2019: $82020: $9Vacation Days Used by Each Employee2019: $02020: $10Sick Days Used by Each Employee2019: $52020: $6 (a)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 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCredit2019enter an account title to accrue the expense and liability for vacationsenter a debit amountenter a credit amount enter an account title to accrue the expense and liability for vacationsenter a debit amountenter a credit amount (To accrue the expense and liability for vacations) enter an account title to accrue the expense and liability for sick payenter a debit amountenter a credit amount enter an account title to accrue the expense and liability for sick payenter a debit amountenter a credit amount (To accrue the expense and liability for sick pay) enter an account title to record payment for compensated time when used by employeesenter a debit amountenter a credit amount enter an account title to record payment for compensated time when used by employeesenter a debit amountenter a credit amount (To record payment for compensated time when used by employees) 2020enter an account title to accrue the expense and liability for vacationsenter a debit amountenter a credit amount enter an account title to accrue the expense and liability for vacationsenter a debit amountenter a credit amount (To accrue the expense and liability for vacations) enter an account title to accrue the expense and liability for sick payenter a debit amountenter a credit amount enter an account title to accrue the expense and liability for sick payenter a debit amountenter a credit amount (To accrue the expense and liability for sick pay) enter an account title to record vacation time paidenter a debit amountenter a credit amount enter an account title to record vacation time paidenter a debit amountenter a credit amount enter an account title to record vacation time paidenter a debit amountenter a credit amount (To record vacation time paid) enter an account title to record sick leave paidenter a debit amountenter a credit amount enter an account title to record sick leave paidenter a debit amountenter a credit amount enter an account title to record sick leave paidenter a debit amountenter a credit amount (To record sick leave paid)

Compensation Absence means = Absence for which employees will be paid.

Answered: Teal Company began operations on…

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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Actual Hourly Wage Rate

2019: $8

2020: $9

Vacation Days Used by Each Employee

2019: $0

2020: $10

Sick Days Used by Each Employee

2019: $5

2020: $6

(a)

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 0 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	enter an account title to accrue the expense and liability for vacations	enter a debit amount	enter a credit amount
	enter an account title to accrue the expense and liability for vacations	enter a debit amount	enter a credit amount
	(To accrue the expense and liability for vacations)
	enter an account title to accrue the expense and liability for sick pay	enter a debit amount	enter a credit amount
	enter an account title to accrue the expense and liability for sick pay	enter a debit amount	enter a credit amount
	(To accrue the expense and liability for sick pay)
	enter an account title to record payment for compensated time when used by employees	enter a debit amount	enter a credit amount
	enter an account title to record payment for compensated time when used by employees	enter a debit amount	enter a credit amount
	(To record payment for compensated time when used by employees)
2020	enter an account title to accrue the expense and liability for vacations	enter a debit amount	enter a credit amount
	enter an account title to accrue the expense and liability for vacations	enter a debit amount	enter a credit amount
	(To accrue the expense and liability for vacations)
	enter an account title to accrue the expense and liability for sick pay	enter a debit amount	enter a credit amount
	enter an account title to accrue the expense and liability for sick pay	enter a debit amount	enter a credit amount
	(To accrue the expense and liability for sick pay)
	enter an account title to record vacation time paid	enter a debit amount	enter a credit amount
	enter an account title to record vacation time paid	enter a debit amount	enter a credit amount
	enter an account title to record vacation time paid	enter a debit amount	enter a credit amount
	(To record vacation time paid)
	enter an account title to record sick leave paid	enter a debit amount	enter a credit amount
	enter an account title to record sick leave paid	enter a debit amount	enter a credit amount
	enter an account title to record sick leave paid	enter a debit amount	enter a credit amount
	(To record sick leave paid)

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