P1. Coyote Construction, Inc. employs 20 individuals who work 8 hours a day and are paid hourly. Each employee earns one day paid sick leave and one day paid vacation a month if he or she works full-time in the month. Vacations earned in one year can be used in the following years while sick leaves can be used as they are earned. The following information pertains to vacation earned in 2017 and used in 2018.
Vacations
Vacations Earned in 2017 =210 days used in 2018 =160days
The average pay rates are $13/hour in 2017 and $15/hour in 2018.
Instructions: prepare any necessary journal entries for
1) Vacations earned in 2017.
2) Vacations used in 2018.
| Date | General Journal | Debit | Credit |
| 2017 | Salaries and wages expense (210 x 8 x $13) | 21840 | |
| Salaries and wages payable | 21840 | ||
| (To accrue the expense and liability for vacations earned in 2017) | |||
| 2018 | Salaries and wages expense | 2560 | |
| Salaries and wages payable (160 x 8 x $13)] | 16640 | ||
| Cash (160 x 8 x $15) | 19200 | ||
| (To record vacations used in 2018) |
P1. Coyote Construction, Inc. employs 20 individuals who work 8 hours a day and are paid...