Buffalo Incorporated began operations on January 2, 2016. Buffalo employs 12 individuals who work 8-hour days and are paid hourly. Each employee earns 12 paid vacation days and 5 paid sick days annually. Vacation days may be taken after February 28 of 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 Vacation Days Used Sick Days Used Wage Rate by Each Employee by Each Employee 2016 2017 2016 2017 2016 2017 $13 $15 10 4 3 2.

PAYROLL ACCT.,2019 ED.(LL)-TEXT
19th Edition
ISBN:9781337619783
Author:BIEG
Publisher:BIEG
Chapter3: Social Security Taxes
Section: Chapter Questions
Problem 17PB
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Question
Prepare journal entries to record transactions related to compensated absences during 2016 and 2017. (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 manually.)
Date Account Titles and Explanation
Debit
Credit
2016
(To accrue the expense and liability for vacations)
Transcribed Image Text:Prepare journal entries to record transactions related to compensated absences during 2016 and 2017. (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 manually.) Date Account Titles and Explanation Debit Credit 2016 (To accrue the expense and liability for vacations)
Buffalo Incorporated began operations on January 2, 2016. Buffalo employs 12 individuals who work 8-hour days and are paid hourly.
Each employee earns 12 paid vacation days and 5 paid sick days annually. Vacation days may be taken after February 28 of 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
Vacation Days Used
by Each Employee
Sick Days Used
by Each Employee
Wage Rate
2016
2017
2016
2017
2016
2017
$13
$15
2
10
4
3
Transcribed Image Text:Buffalo Incorporated began operations on January 2, 2016. Buffalo employs 12 individuals who work 8-hour days and are paid hourly. Each employee earns 12 paid vacation days and 5 paid sick days annually. Vacation days may be taken after February 28 of 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 Vacation Days Used by Each Employee Sick Days Used by Each Employee Wage Rate 2016 2017 2016 2017 2016 2017 $13 $15 2 10 4 3
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