Stellar Company began operations on January 2, 2019. It employs 10 individuals who work 8-hour days and are paid hourly. Each employee earns 11 paid vacation days and 7 paid sick daysannually. Vacation days may be taken after January 15 of the year following the year in whichthey are earned. Sick days may be taken as soon as they are earned; unused sick daysaccumulate. Additional information is as follows.Actual HourlyWage Rate2019$9(a)2020$102020Vacation Days Usedby Each Employee201902020Salaries and Wages Expense10Salaries and Wages Payable.Stellar Company has chosen to accrue the cost of compensated absences at rates of pay ineffect during the period when earned and to accrue sick pay when earned.Sick Days Usedby Each Employee20202019Prepare journal entries to record transactions related to compensated absences during2019 and 2020. (If no entry is required, select "No Entry" for the account titles and enter O for theamounts. Credit account titles are automatically indented when amount is entered. Do not indent---lII.1(To accrue the expense and liability for vacations)564,8004,800

Working Note #1:— Salaries and Wages Expense for vacation days in 2019 = 10 employees×8 hours per…

Stellar Company began operations on January 2, 2019. It employs 10 individuals who work 8- hour days and are paid hourly. Each employee earns 11 paid vacation days and 7 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 2019 $9 (a) 2020 $10 2020 Vacation Days Used by Each Employee 2019 0 2020 Salaries and Wages Expense 10 Salaries and Wages Payable Sick Days Used by Each Employee Stellar Company has chosen to accrue the cost of compensated absences at rates of pay in effect during the period when earned and to accrue sick pay when earned. 2019 (To accrue the expense and liability for vacations) 5 Prepare journal entries to record transactions related to compensated absences during 2019 and 2020. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent -l1..1 2020 6 4,800 4,800

Stellar Company began operations on January 2, 2019. It employs 10 individuals who work 8- hour days and are paid hourly. Each employee earns 11 paid vacation days and 7 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 2019 $9 (a) 2020 $10 2020 Vacation Days Used by Each Employee 2019 0 2020 Salaries and Wages Expense 10 Salaries and Wages Payable Sick Days Used by Each Employee Stellar Company has chosen to accrue the cost of compensated absences at rates of pay in effect during the period when earned and to accrue sick pay when earned. 2019 (To accrue the expense and liability for vacations) 5 Prepare journal entries to record transactions related to compensated absences during 2019 and 2020. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent -l1..1 2020 6 4,800 4,800

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter7: Employee Earnings And Deductions

Section: Chapter Questions

Problem 3PA

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Accounting for bonus and vacation pay Cathy Muench a factory worker, earns 1,000 each week. In addition, she will receive a 4,000 bonus at year-end and a four-week paid vacation. Prepare the entry to record the weekly payroll and the costs and liabilities related to the bonus and the vacation pay, assuming that Muench is the only employee.
Barbara Ripa receives 695 for a regular 40-hour week and time and one-half for overtime. For a workweek of 45 hours, compute: a. The regular earnings________ b. The overtime earnings________ c. The total earnings________
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Sheffield Company began operations on January 2, 2019. It employs 10 individuals who work 8-hour days and are paid hourly. Each employee earns 10 paid vacation days and 8 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 HourlyWage Rate Vacation Days Usedby Each Employee Sick Days Usedby Each Employee 2019 2020 2019 2020 2019 2020 $6 $7 0 9 6 7 Sheffield Company has chosen to accrue the cost of compensated absences at rates of pay in effect during the period when earned and to accrue sick pay when earned. (a) Correct answer icon Your answer is correct Prepare journal entries to record transactions related to compensated absences during 2019 and 2020. (If no entry is required, select "No Entry" for the account…
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Monty Company began operations on January 2, 2019. It employs 9 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 HourlyWage Rate Vacation Days Usedby Each Employee Sick Days Usedby Each Employee 2019 2020 2019 2020 2019 2020 $10 $11 0 9 4 5 Monty Company has chosen not to accrue paid sick leave until used, and has chosen to accrue vacation time at expected future rates of pay without discounting. The company used the following projected rates to accrue vacation time. Year in Which VacationTime Was Earned Projected Future Pay RatesUsed to Accrue Vacation Pay 2019 $10.97 2020 11.83…
Marin Company began operations on January 2, 2019. It employs 11 individuals who work 8-hour days and are paid hourly. Each employee earns 9 paid vacation days and 7 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 HourlyWage Rate Vacation Days Usedby Each Employee Sick Days Usedby Each Employee 2019 2020 2019 2020 2019 2020 $11 $12 0 8 5 6 Marin Company has chosen to accrue the cost of compensated absences at rates of pay in effect during the period when earned and to accrue sick pay when earned. prepare journal entries to record transactions related to compensated absences during 2019 and 2020. Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2019 and…
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Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2019 and 2020. 2019 2020 Vacation Wages Payable 3888 4968 Sick Pay Wages Payable 864 $ %24 %24 %24 %24