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what amount should be reported as vacation pay expense in 2018? 3,097,600 3,232,000

what amount should be reported as vacation pay expense in 2018? 3,097,600 3,232,000

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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RIZAL CORP. grants its employees 10 days of paid vacation leave per year. Per company's policies, employees are required to take vacation leave each year but not necessarily to take the whole vacation leave credits each year. Vacation leaves not taken during a year can be carried over indefinitely. RIZAL CORP. has 400 employees with an average salary of P800 per day. There is an average increase in salary of 5% every year. During 2018, total leave vacation taken by employees were 3,200 days. Based on past experience, 80% of unused vacation leave for a year are taken immediately next year. If the unused vacation leaves do not vest, what amount should be reported as vacation pay expense in 2018? 3,097,600 3,232,000 3,200,000 2,560,000 O
Transcribed Image Text:RIZAL CORP. grants its employees 10 days of paid vacation leave per year. Per company's policies, employees are required to take vacation leave each year but not necessarily to take the whole vacation leave credits each year. Vacation leaves not taken during a year can be carried over indefinitely. RIZAL CORP. has 400 employees with an average salary of P800 per day. There is an average increase in salary of 5% every year. During 2018, total leave vacation taken by employees were 3,200 days. Based on past experience, 80% of unused vacation leave for a year are taken immediately next year. If the unused vacation leaves do not vest, what amount should be reported as vacation pay expense in 2018? 3,097,600 3,232,000 3,200,000 2,560,000 O
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