FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:MullerB Company's employees earn vacation time at the rate of 1 hour per 40-hour work period. The vacation pay vests immediately,
meaning an employee is entitled to the pay even if employment terminates. During 2024, total salaries paid to employees equaled
$717,100, including $7,100 for vacations actually taken in 2024, but not including vacations related to 2024 that will be taken in 2025.
All vacations earned before 2024 were taken before January 1, 2024. No adjusting entries have been made for the vacations.
View transaction list
Required:
Prepare the appropriate adjusting entry for vacations earned but not taken in 2024.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Journal entry worksheet
Record the adjusting entry for vacations earned.
Note: Enter debits before credits.
You received partial credit in the previous attempt.
Transaction
1
General Journal
Saved
Salaries expense
Liability compensated future absences
▼
Debit
10,150
Credit
10,150
He
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