Eagles Inc is a new start up$.$ During their first year of operations, they agreed to provide their employees with $2$ hour of vacation for every $40$ hours worked. Vacation vests immediately $($cannot be taken away$).$ This means that employees have earned $5\%$ of their compensation for hours worked for vacation. This year the employees were paid $$1,200,000$ in wages. Of those wages, $$1,150,000$ were for hours employees worked and $$50,000$ were vacation days earned in the current year. What adjusting entry is needed at the end of the fiscal year for vacations earned but not taken?

Answer rating: 100% (QA)

To account for vacations earned but not taken at the end of the fiscal year an adjusting entry is ne... View the full answer