Question

Blossom Company began operations on January 2, 2019. It employs 11 individuals who work 8-hour days and are paid hourly. Each employee earns 9 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 Vacation Days Used by Each Employee Sick Days Used by Each Employee 2019 2020 2019 2020 2019 2020 $10 $11 0 8 4 5 Blossom 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 2019 and 2020. (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.) Date Account Titles and Explanation Debit Credit 2019 enter an account title to accrue the expense and liability for vacations enter a debit amount enter a credit amount enter an account title to accrue the expense and liability for vacations enter a debit amount enter a credit amount (To accrue the expense and liability for vacations) enter an account title to accrue the expense and liability for sick pay enter a debit amount enter a credit amount enter an account title to accrue the expense and liability for sick pay enter a debit amount enter a credit amount (To accrue the expense and liability for sick pay) enter an account title to record payment for compensated time when used by employees enter a debit amount enter a credit amount enter an account title to record payment for compensated time when used by employees enter a debit amount enter a credit amount (To record payment for compensated time when used by employees) 2020 enter an account title to accrue the expense and liability for vacations enter a debit amount enter a credit amount enter an account title to accrue the expense and liability for vacations enter a debit amount enter a credit amount (To accrue the expense and liability for vacations) enter an account title to accrue the expense and liability for sick pay enter a debit amount enter a credit amount enter an account title to accrue the expense and liability for sick pay enter a debit amount enter a credit amount (To accrue the expense and liability for sick pay) enter an account title to record vacation time paid enter a debit amount enter a credit amount enter an account title to record vacation time paid enter a debit amount enter a credit amount enter an account title to record vacation time paid enter a debit amount enter a credit amount (To record vacation time paid) enter an account title to record sick leave paid enter a debit amount enter a credit amount enter an account title to record sick leave paid enter a debit amount enter a credit amount enter an account title to record sick leave paid enter a debit amount enter a credit amount (To record sick leave paid) LINK TO TEXT

Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2019 and 2020. 2019 2020 Vacation Wages Payable $enter a dollar amount $enter a dollar amount Sick Pay Wages Payable

Answer 1

Date	Accounts titles and explanation	Debit	Credit
2019	salaries and wages expense	$ 7,920
	Salaries and wages payable		$ 7,920
	( 11 employees * $ 10 per hour * 8 hours per day * 9 days )
	( to accrue the expenses and liability for vacations )
2019	salaries and wages expense	$ 5,280
	Salaries and wages payable		$ 5,280
	( 11 employees * $ 10 per hour * 8 hours per day * 6 days )
	( to accrue the expenses and liability for sick pay )
2019	Salaries and wages payable	$ 3,520
	Cash		$ 3,520
	( 11 employees * $ 10 per hour * 8 hours per day * 4 days )
	( to record payment for compensated time when used by employees)
2020	salaries and wages expense	$ 8,712
	Salaries and wages payable		$ 8,712
	( 11 employees * $ 11 per hour * 8 hours per day * 9 days )
	( to accrue the expenses and liability for vacations )
2020	salaries and wages expense	$ 5,808
	Salaries and wages payable		$ 5,808
	( 11 employees * $ 11 per hour * 8 hours per day * 6 days )
	( to accrue the expenses and liability for sick pay )
2020	salaries and wages expense ($ 7,744 - $ 7,040 )	$ 704
	Salaries and wages payable	$ 7,040
	( 11 employees * $ 10 per hour * 8 hours per day * 8 days )
	Cash		$ 7,744
	( 11 employees * $ 11 per hour * 8 hours per day * 8 days )
	( to record Vacation time paid )
2020	salaries and wages expense ($ 4,840 - $ 4,664 )	$ 176
	Salaries and wages payable ( see note 1 )	$ 4,664
	Cash		$ 4,840
	( 11 employees * $ 11 per hour * 8 hours per day * 5 days )
	( to record sick leave paid )

NOTE 1 :
( 11 employees * $ 10 per hour * 8 hours per day * 2 days )+ ( 11 employees * $ 11 per hour * 8 hours per day * 3 days )
$ 1,760 + $ 2,904 = $ 4,664
here above 2 days = ( 6 days - 4 days )
here above 3 days = ( 6 days - 4 days )+ ( 6 days - 5 days )

b)	compute the amounts of any liability for compensated absences that should
	be reported on the balance sheet at December 31,2019 and 2020
		2019	2020
	Vacation wages payable	$ 7,920	$ 9,592
	Sick pay wages payable	$ 1,760	$ 2,904
	( all explanation is given below in note 2 )

note 2 :
	2019	2019
	Vacation wages payable	Sick pay wages payable
Jan 1 Balance	$ 0	$ 0
Plus : Accrued	$ 7,920	$ 5,280
Less: Paid	( $ 0 )	($ 3,520)
Dec 31, Balance	$ 7,920	$ 1,760
	2020	2020
	Vacation wages payable	Sick pay wages payable
Jan 1 Balance	$ 7,920	$ 1,760
Plus : Accrued	$ 8,712	$ 5,808
Less: Paid	( $ 7,040 )	($ 4,664 )
Dec 31, Balance	$ 9,592	$ 2,904