FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Compensated Absences. Data: Poplar Fabrication grants its employees 2 weeks vacation each year. Unused are taken the next year. In 2024 there were700 weeks of unused vacation. The employees earned an average wage of $900 per week. In 2025 the 700 weeks were taken with a 5 Percent wage increase.
Required: 1. Prepare the
- Prepare the journal entry for the vacation weeks taken in 2025. ( hint 5% raise)
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Step 1: Calculation of wages expenses
polar fabrications permit vacation for the year :
The employees earned an average wage = $900 per week
Unused vacations = 700 week
Wages expenses = 900 *700 = $ 630,000
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