Coronado Company began operations on January 2, 2016. It employs 9 individuals w
ID: 2562628 • Letter: C
Question
Coronado Company began operations on January 2, 2016. It employs 9 individuals who work 8-hour days and are paid hourly. Each employee earns 10 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.
Coronado 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.Prepare journal entries to record transactions related to compensated absences during 2016 and 2017.
vacation Days Used by Each Employc 2016 Actual Hourly Sick Days Used by Each Employcoc 017 Wagc Ratc 2016 2017. 01 7 2016 57 58Explanation / Answer
2016:
1)Amount is =9*8*10*7=5040
2)=9*8*8*7=4032
3)since 4 sick leaves taken
amount=9*8*6*7=3024
2017:
1)=9*8*10*8=5760
2)=9*8*8*8=4608
To record vacation time paid
salaries and wages expense(db)648
Salaries and wages payable(db) 9*7*8*9=4536
cash(cr) 9*8*8*9=5184
To record sick leave paid:
salaries and wages expense(db)504
Salaries and wages payable(db) 9*7*8*7=3528
cash(cr) 9*8*8*7=4032