Question

Chavez estimated and must expense $8,000 of accrued vacation benefits for the year. (a) Prepare the December 31 year-end adjusting entry for accrued vacation benefits. (b) Prepare the entry on April 1 of the next year when an employee takes a one-week vacation and is paid $500 cash for that week.

Answer 1

Answer:

Journal Entry

Explanation:

a.Vacation Benefits Expense Dr,          $8,000  

       To Vacation Benefits Payable      $8,000

(Being the vacation benefit expense for the year is recorded)

b. Vacation Benefits Payable Dr,           $500  

        To Cash                                           $500

(Being the vacation benefits payment for one week is recorded)