Bonita Company began operations on January 2, 2025. It employs 10 individuals who work 8-hour days...
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Bonita Company began operations on January 2, 2025. It employs 10 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 Vacation Days Used Wage Rate by Each Employee Sick Days Used by Each Employee 2025 2026 2025 2026 2025 2026 $11 $12 0 8 4 5 Bonita 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. (a) Your answer is partially correct. Prepare journal entries to record transactions related to compensated absences during 2025 and 2026. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit 2025 Salaries and Wages Expense Salaries and Wages Payable (To accrue the expense and liability for vacations) 7920 7920 entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation 2025 Salaries and Wages Expense Salaries and Wages Payable (To accrue the expense and liability for vacations) Salaries and Wages Expense Salaries and Wages Payable (To accrue the expense and liability for sick pay) Salaries and Wages Payable Cash (To record payment for compensated time when used by employees) 2026 Salaries and Wages Expense Salaries and Wages Payable (To accrue the expense and liability for vacations) Debit 7920 5280 3,520 8,640 Credit 7920 5280 3,520 8,640 employees) 2026 Salaries and Wages Expense Salaries and Wages Payable (To accrue the expense and liability for vacations) Salaries and Wages Expense Salaries and Wages Payable (To accrue the expense and liability for sick pay) Salaries and Wages Payable Salaries and Wages Expense Cash (To record vacation time paid) Salaries and Wages Payable 8,640 5,760 8,640 5,760 7,680 Salaries and Wages Expense Cash (To record sick leave paid) 4,800 Bonita Company began operations on January 2, 2025. It employs 10 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 Vacation Days Used Wage Rate by Each Employee Sick Days Used by Each Employee 2025 2026 2025 2026 2025 2026 $11 $12 0 8 4 5 Bonita 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. (a) Your answer is partially correct. Prepare journal entries to record transactions related to compensated absences during 2025 and 2026. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit 2025 Salaries and Wages Expense Salaries and Wages Payable (To accrue the expense and liability for vacations) 7920 7920 entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation 2025 Salaries and Wages Expense Salaries and Wages Payable (To accrue the expense and liability for vacations) Salaries and Wages Expense Salaries and Wages Payable (To accrue the expense and liability for sick pay) Salaries and Wages Payable Cash (To record payment for compensated time when used by employees) 2026 Salaries and Wages Expense Salaries and Wages Payable (To accrue the expense and liability for vacations) Debit 7920 5280 3,520 8,640 Credit 7920 5280 3,520 8,640 employees) 2026 Salaries and Wages Expense Salaries and Wages Payable (To accrue the expense and liability for vacations) Salaries and Wages Expense Salaries and Wages Payable (To accrue the expense and liability for sick pay) Salaries and Wages Payable Salaries and Wages Expense Cash (To record vacation time paid) Salaries and Wages Payable 8,640 5,760 8,640 5,760 7,680 Salaries and Wages Expense Cash (To record sick leave paid) 4,800
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Related Book For
Intermediate Accounting
ISBN: 9781119790976
18th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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