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under uses the following projected rates to accrue vacation ti Pay Rates Used cation Pay

under uses the following projected rates to accrue vacation ti Pay Rates Used cation Pay

FINANCIAL ACCOUNTING
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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I need help with c) please make sure to provide four answers, with solutions the better.        

Flounder Limited began operations on January 2, 2019. The company employs 6 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 2019 2020 2019 2020 2019 2020 $20 $22 0 9 4 5 Assume that Flounder 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. Flounder uses the following projected rates to accrue vacation time: Year in which Vacation Time Was Earned Projected Future Pay Rates Used to Accrue Vacation Pay 2019 $20.75 per hour 2020 $22.60 per hour Prepare the journal entries to record the transactions related to vacation entitlement during 2019 and 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit 2019 Salarles and Wages Expense 9960 Vacation Wages Payable 9960 (To accrue the expense and liability for vacations) No Entry No Entry (To record vacation time paid) Salarles and Wages Expense 10848 Vacation Wages Payable 10848 (To accrue the expense and liability for vacations) Salarles and Wages Expense 5:40 Vacation Wages Payable 8964 Cash 9504 (To record vacation time paid) Your answer is correct. Prepare the journal entries to record the transactions related to sick days during 2019 and 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit 2019 Salaries and Wages Expense 3840 Cash 3840 2020 Salaries and Wages Expense 5280 Cash 5280 * Your answer is incorrect. Calculate the amounts of any liability for vacation pay and sick days that should be reported on the SFP at December 31, 2019, and 2020. 2019 2020 Liability for vacation pay 9600 $ 11520 Liability for sick pay 1920 3168 2019 2020 2020 (b) (c) LA LA LA
Transcribed Image Text:Flounder Limited began operations on January 2, 2019. The company employs 6 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 2019 2020 2019 2020 2019 2020 $20 $22 0 9 4 5 Assume that Flounder 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. Flounder uses the following projected rates to accrue vacation time: Year in which Vacation Time Was Earned Projected Future Pay Rates Used to Accrue Vacation Pay 2019 $20.75 per hour 2020 $22.60 per hour Prepare the journal entries to record the transactions related to vacation entitlement during 2019 and 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit 2019 Salarles and Wages Expense 9960 Vacation Wages Payable 9960 (To accrue the expense and liability for vacations) No Entry No Entry (To record vacation time paid) Salarles and Wages Expense 10848 Vacation Wages Payable 10848 (To accrue the expense and liability for vacations) Salarles and Wages Expense 5:40 Vacation Wages Payable 8964 Cash 9504 (To record vacation time paid) Your answer is correct. Prepare the journal entries to record the transactions related to sick days during 2019 and 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit 2019 Salaries and Wages Expense 3840 Cash 3840 2020 Salaries and Wages Expense 5280 Cash 5280 * Your answer is incorrect. Calculate the amounts of any liability for vacation pay and sick days that should be reported on the SFP at December 31, 2019, and 2020. 2019 2020 Liability for vacation pay 9600 $ 11520 Liability for sick pay 1920 3168 2019 2020 2020 (b) (c) LA LA LA
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