On January 1, 2021, a company began the policy of giving each of its 75 employees 12 days of vacation each year. The vacation accumulates such that unused vacation days can be carried over from year to year, up to a maximum of 30 days. Vacation days may be taken at any time during the year. During 2021, employees took an average of 9 days of vacation each, and in 2022, employees took an average of 11 days of vacation each. The company’s policy is to record the liability existing at the end of each year at the wage rate for that year. In 2021, the employees’ average salary was $168 per day and in 2022, the average salary was $192 per day. What amount of vacation liability would be shown on the 2021 and 2022 balance sheets, respectively

Multiple Choice

$43,200; $14,400

$37,800; $14,400

$43,200; $57,600

$37,800; $57,600

Answer rating: 100% (QA)

Vacation Allowed per employee 12 Less Vacation took ... View the full answer