FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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 202O.
2019
2020
Vacation Wages Payable
$
Sick Pay Wages Payable
$
%24
%24
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Transcribed Image Text:Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2019 and 202O. 2019 2020 Vacation Wages Payable $ Sick Pay Wages Payable $ %24 %24
Ayayai Company began operations on January 2, 2019. It employs 9 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 Hourly
Sick Days Used
by Each Employee
Vacation Days Used
Wage Rate
by Each Employee
2019
2020
2019
2020
2019
2020
$6
$7
5
Ayayai 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.
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Transcribed Image Text:Ayayai Company began operations on January 2, 2019. It employs 9 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 Hourly Sick Days Used by Each Employee Vacation Days Used Wage Rate by Each Employee 2019 2020 2019 2020 2019 2020 $6 $7 5 Ayayai 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.
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