FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:A company gives each of its 65 employees (assume they were all employed continuously through 2020 and 2021) 12 days of
vacation a year if they are employed at the end of the year. The vacation accumulates and may be taken starting January 1 of the
next year. The employees work 8 hours per day. In 2020, they made $25 per hour and in 2021 they made $28 per hour. During 2021,
they took an average of 9 days of vacation each. The company's policy is to record the liability existing at the end of each year at the
wage rate for that year. What amount of vacation liability would be reflected on the 2020 and 2021 balance sheets, respectively?
O $156000; $218400
O $174720; $215400
O $156000; $215400
O $174720; $218400
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