Riverbed Limited began operations on January 2, 2022. Riverbed employs 11 individuals who work eight hour days and are paid hourly. Each employee earns 10 paid vacation days and 6 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 2022 2023 $20.00 $21.00 Vacation Days Used by Each Employee 2022 0 Year in which Vacation Time Was Eamed 2022 2023 (a) 2023 8 Sick Days Used by Each Employee 2022 2023 Assume that Riverbed Limited has chosen not to recognize paid sick leave until it is used, and has chosen to accrue vacation time at expected future rates of pay without discounting. Riverbed uses the following projected rates to accrue vacation time: 3 Projected Future Pay Rates Used to Accrue Vacation Pay $20.75 per hour $21.60 per hour Prepare the journal entries to record the transactions related to vacation entitlement during 2022 and 2023. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.)
Riverbed Limited began operations on January 2, 2022. Riverbed employs 11 individuals who work eight hour days and are paid hourly. Each employee earns 10 paid vacation days and 6 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 2022 2023 $20.00 $21.00 Vacation Days Used by Each Employee 2022 0 Year in which Vacation Time Was Eamed 2022 2023 (a) 2023 8 Sick Days Used by Each Employee 2022 2023 Assume that Riverbed Limited has chosen not to recognize paid sick leave until it is used, and has chosen to accrue vacation time at expected future rates of pay without discounting. Riverbed uses the following projected rates to accrue vacation time: 3 Projected Future Pay Rates Used to Accrue Vacation Pay $20.75 per hour $21.60 per hour Prepare the journal entries to record the transactions related to vacation entitlement during 2022 and 2023. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Riverbed Limited began operations on January 2, 2022. Riverbed employs 11 individuals who work eight hour days and are paid
hourly. Each employee earns 10 paid vacation days and 6 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
2022
2023
$20.00 $21.00
Vacation Days Used
by Each Employee
2022
0
Year in which Vacation Time
Was Eamed
2022
2023
(a)
2023
8
Assume that Riverbed Limited has chosen not to recognize paid sick leave until it is used, and has chosen to accrue vacation time at
expected future rates of pay without discounting. Riverbed uses the following projected rates to accrue vacation time:
Date
Sick Days Used
by Each Employee
2022
2023
3
Projected Future Pay Rates Used
to Accrue Vacation Pay
$20.75 per hour
$21.60 per hour
Prepare the journal entries to record the transactions related to vacation entitlement during 2022 and 2023. (Credit account titles
are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is
required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.)
Account Titles and Explanation
(To accrue the expense and liability for vacations)
(To record vacation time paid)
(To accrue the expense and liability for vacations)
Debit
Credit
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