Part 1.

A company’s salaried employees earn two weeks’ vacation per year. The company estimated and must expense $9,000 of accrued vacation benefits for the year.

(a) Prepare the December 31 year-end adjusting entry to record accrued vacation benefits. 

(b) Prepare the entry on May 1 of the next year when an employee takes a one-week vacation and is paid $450 cash for that week.
Part 2.

For the current year ended December 31, a company has implemented an employee bonus program based on its net income, which employees share equally. Its bonus expense is $40,000. 

(a) Prepare the journal entry at December 31 of the current year to record the bonus due.

(b) Prepare the journal entry at January 20 of the following year to record payment of that bonus to employees.
Part 3.

On December 11 of the current year, a retailer sells a trimmer for $400 with a one-year warranty that covers parts.
Warranty expense is estimated at 5% of sales. On March 24 of the next year, the trimmer is brought in for repairs covered under the warranty requiring $15 in materials taken from the Parts Inventory.
Prepare the

(a) December 11 entry to record the trimmer sale—ignore the cost of sales part of this sales entry,

(b) December 31 adjusting entry for estimated warranty liability, and

(c) March 24 entry to record warranty repairs.