Question

65 employees have earned two weeks of vacation time to be taken the following year. If the average weekly salary for these employees is $900, what is the required journal entry to accrue compensated absences

Answer 1

Answer: Debit Salaries and Wages Expense $117000

Credit Salaries and Wages Payable $117000

Explanation:

Based on the information given in the question, the required journal entry to accrue compensated absences will be as follows:

First, we need to know the amount of the compensated absence which will be:

= 65 employees × $900 × 2 Weeks vacation

= $117000

Therefore, the journal entry is:

Debit Salaries and Wages Expense $117000

Credit Salaries and Wages Payable $117000