Question

Assume that salaried employees of Mayer, Inc., earn 2 weeks of vacation per year. The salaried employees earn a total of $160 each pay period. Mayer's first payroll of the year is on January 7. Prepare the January 7 journal entry for Mayer by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.

Answer 1

Answer:

Dr. Salaried and Wages Expense  $160

Cr. Vocational benefit Payable       $160

Explanation:

The vocational pay is an expense for Mayer, Inc., to record this expense we have debited the Salaried and Wages Expense account by $160, because expenses have debit nature and need a debit entry to Increase.

O the other hand a liability will be created for vocational benefit payable, which needs a credit entry to Vocational benefit Payable account.

Answer 2

Answer:

Jan .7 Dr Vacation Benefits Expense $ 160

Cr To Vacation Benefits Payable $160

Explanation:

Journal entry for Mayer

Date Account Name Debit Credit

Jan .7

Dr Vacation Benefits Expense $ 160

Cr To Vacation Benefits Payable $160

( to record vacation pay expense.)