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Chapter 11: Q10SE (page 606)

Samuel Industries has three employees. Each employee earns two vacation days a month. Samuel pays each employee a weekly salary of $1,250 for a five-day workweek. Requirements

1. Determine the amount of vacation expense for one month.

2. Journalize the entry to accrue the vacation expense for the month.

Short Answer

Expert verified
  1. Vacation expenses = $1,000
  2. Employee vacation expense debit and payable credit with $1,000

Step by step solution

01

Vacation Payment

Vacationexpenceforthemonth=employees×Monthlysalary× 230=3×$1,250×4 × 230=$1,000

02

Journal Entries

Date

Particulars

Debit

Credit

Employee Vacation Expense

$1,000

Employee Vacation Payable

$1,000

(To record employee accrue vacation expense)

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Most popular questions from this chapter

Lucy Rose works at College of Fort Worth and is paid $12 per hour for a 40-hour workweek and time-and-a-half for hours above 40.

Requirements

1. Compute Rose’s gross pay for working 60 hours during the first week of February.

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Jan. 9 Purchased computer equipment at a cost of \(12,000, signing a six-month, 9% note payable for that amount.

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