Chapter 11, Problem 12E

To determine

Concept Introduction:

Accrued Vacation Liability:

Accrued vacation liability is the amount due to employees on account of vacation time earned by them which is unused or unpaid. This is accounted for by debiting vacation expenses and crediting accrued vacation liability account

Warranty liability:

Warranty liability implies the obligation of the seller to repair or replace a defective good supplied to a customer. The warranty expenses are accounted for in the period in which the revenue of the good is recognized as per the matching principle of accounting.

To prepare:

Journal entries to account for the entries and adjustments