hExercise 13-5 (Part Level Submission) Matt Broderick Company began operations o

Question

hExercise 13-5 (Part Level Submission) Matt Broderick Company began operations on January 2, 2013. It employs 10 individuals who work 8-hour days and are paid hourly. Each employee earns 9 paid vacation days and 8 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 Vacation Days Used by Each Employee Sick Days Used by Each Employee 2013 2014 2013 2014 2013 2014 $16 $17 0 8 6 7 Matt Broderick Company has chosen to accrue the cost of compensated absences at rates of pay in effect during the period when earned and to accrue sick pay when earned. Collapse question part (a) Partially correct answer. Your answer is partially correct. Try again. Prepare journal entries to record transactions related to compensated absences during 2013 and 2014. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) management is considering if th

Explanation / Answer

Answer:(a)

2013:

Wage expense A/C dr. $21760

     To Vacation wages payable                $11520

    To Sick pay wages payable                  $10240

2014:

Wage expense A/C dr. $23120

     To Vacation wages payable                $12240

    To Sick pay wages payable                  $10880

2013: Sick pay wages payable A/c Dr. $ 7680

                 To Cash $ 7680

2014:

Vacation wages payable A/c Dr. $ 5760

Sick pay wages payable A/c Dr. $9360

Wage expense A/c Dr.                 $1360

      To cash $ 16480

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