Alberto Motors, Inc. employs 1,000 hourly employees. during the current year, employees earned 2,250 weeks of vacation, but 400 employees elected to carry over a total of 850 vacation weeks to the following year. employees took the remaining 1,400 weeks of vacation during the current year. Alberto typically follows a policy that all accumulated vacation days are lost by the employee either upon termination or at retirement. using an average wage rate of $900 per week, prepare the journal entries required to record Albert's vacation accrual.

a.) Begin by preparing the journal entry for the compensation expense related to the 1,400 vacation weeks taken during the current year.

b.) Next, record the entry for the compensation expense related to the 850 vacation weeks carried over to future periods.

c.) Now, record the entry Alberto makes In the following year when employees take vacation days.

Answer rating: 100% (QA)

Data Available 1 Company Alberto Motors Inc Hourly employees 1000 2 Earned vacation 2250 weeks 3 400 ... View the full answer