Chapter 11, Problem 11.10SE

1.

To determine

Vacation expense: Vacation expense is an estimated expense for the company which the company should pay to the employees as extra salary over the entire year. For example: If an employee works 49 weeks in a year, company should pay 3 weeks’ $\left(\text{52 weeks }–\text{ 49 weeks}\right)$ extra salary as a vacation expense.

To calculate: The amount of vacation expense for one month.

2.

To determine

To journalize: Vacation expense for the month.