Chapter 11, Problem 8QS

To determine

Concept Introduction

Weekly Vacation Benefits Expense: It is the difference between the total weekly expense and weekly paid cash. Total weekly expense is calculated by dividing total employees’ salaries by number of weeks the employees actually work. Weekly paid cash is calculated by dividing total employees’ salaries by total number of weeks in a year.

Vacation Benefits Payable: It is a company’s liability because a company is liable to pay the weekly vacation benefits expense to the employees until the vacations are used by the employees.

To Record: Chavez’s weekly vacation benefits expense.