Snow Co. began operations on January 2, 2014. It employs 17 people who work 8-ho
ID: 2424705 • Letter: S
Question
Snow Co. began operations on January 2, 2014. It employs 17 people who work 8-hour days. Each employee earns 10 paid vacation days annually. Vacation days may be taken after January 10 of the year following the year in which they are earned. The average hourly wage rate was $21 in 2014 and $22.50 in 2015. The average vacation days used by each employee in 2015 was 9. Yates Co. accrues the cost of compensated absences at rates of pay in effect when earned. Prepare journal entries to record the transactions related to paid vacation days during 2014 and 2015. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
2014
2015
2015
Date
Account Titles and Explanation
Debit
Credit
2014
Salaries and Wages Expense
2015
(To record salaries and wages paid.)2015
(To record salaries and wages accrued.)Explanation / Answer
2014 Salaries and wages expenses 28560
To Sales and wages payable 28560
( 17 people × 8 hrs × $ 21 = 2856 × 10 =$28560)
2015 Salaries & wages expenses 1836
Salaries and wages payable. 25704 ( 2856 × 9)
To Cash. 27540
(17 employes ×8hrs × $22.5= 3060×9)
2015 Salaries and wages expenses( 2700×10) 27000
To salaries and wages payable 27000
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