Tobago Inc.’s hourly employees normally work eight hours a day, five days a week. Employees who work this schedule every week for 50 weeks earn two weeks of paid vacation. The company’s four hourly employees are listed along with information about the two-week pay period that ended on Friday, April 30. Employees will be paid on the following Monday. April 30 is Tobago’s fiscal year end.
(a) Calculate net pay for each employee.
(b) Prepare the journal entry to record this payroll.
(c) Regarding Tobago’s vacation plan,
(1) How many hours do Tobago’s employees work during a year?
(2) How many hours of vacation do the employees earn if they work the full 50 weeks?
(3) How many hours does an employee have to work to earn one hour of vacation?
(4) What is the value of the vacation earned during the pay period ending April 30?
(5) Prepare the journal entry to record the accrual of the vacation pay.

  • CreatedMarch 27, 2015
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