Cheyenne Company began operations on January 2, 2019. It employs 12 individuals who work 8-hour days and are paid hourly. Eachemployee earns 11 paid vacation days and 7 paid sick days annually. Vacation days may be taken after January 15 of the year followingthe year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additionalinformation is as follows.Actual HourlyWage Rate2019 2020$7$8Vacation Days Usedby Each Employee20201020190Sick Days Usedby Each Employee2019202056Cheyenne Company has chosen to accrue the cost of compensated absences at rates of pay in effect during the period when earnedand to accrue sick pay when earned. (To accrue the expense and liability for sick pay)Salaries and Wages ExpenseSalaries and Wages PayableCash(To record vacation time paid)Salaries and Wages ExpenseSalaries and Wages Payablecash(To record sick leave paid)1056739284483840

Definition of Accrued liabilitiesThe term "accrued liability" refers to an expense incurred but not…

Cheyenne Company began operations on January 2, 2019. It employs 12 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 $7 2020 $8 Vacation Days Used by Each Employee 2019 2020 0 10 Sick Days Used by Each Employee 2019 2020 5 Cheyenne 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.

Cheyenne Company began operations on January 2, 2019. It employs 12 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 $7 2020 $8 Vacation Days Used by Each Employee 2019 2020 0 10 Sick Days Used by Each Employee 2019 2020 5 Cheyenne 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.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter9: Payroll Accounting: Employer Taxes And Reports

Section: Chapter Questions

Problem 1MC

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