Question: Assume the facts in E13-5, except that Matthewson Company has chosen not to accrue paid sick leave until used, and has chosen to accrue vacation

Assume the facts in E13-5, except that Matthewson Company has chosen not to accrue paid sick leave until used, and has chosen to accrue vacation time at expected future rates of pay without discounting. The company used the following projected rates to accrue vacation time.

Instructions(a) Prepare journal entries to record transactions related to compensated absences during 2012 and 2013.(b) Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2012 and2013.

Year in Which Vacation Time Was Earned 2012 2013 Projected Future Pay Rates Used to Accrue Vacation Pay $12.90 13.70

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a 2012 To accrue the expense and liability for vacations Salaries and Wages Expense 9288 1 Salaries ... View full answer

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