Ask question

Ask question

All categories

Oksi-84 [34.3K]

3 years ago

13

Accrued Vacation Pay A business provides its employees with varying amounts of vacation per year, depending on the length of emp

loyment. The estimated amount of the current year's vacation pay is $106,800. Journalize the adjusting entry required on January 31, the end of the first month of the current year, to record the accrued vacation pay.

1 answer:

Elena L [17]3 years ago

6 0

Answer:

On Jan 31

Vacation pay expense Dr $8,900

To vacation payable $8,900

(Being the vacation expense is recorded)

Explanation:

The journal entry is as follows

On Jan 31

Vacation pay expense Dr $8,900

To vacation payable $8,900

(Being the vacation expense is recorded)

The computation is shown below:

= Estimated amount of the current year's vacation pay ÷ total number of months in a year

= $106,800 ÷ 12 months

= $8,900

For recording this transaction we debited the vacation expense as it increased the expenses while at the same time it also increased the liabilities so the vacation payable is credited

You might be interested in

LO 7.2What operating budget exists for manufacturing but not for a retail company?

belka [17]

Answer:

Production Budget

Explanation:

Production Budget is usually substituted <em>with</em> Purchasing budget for a retail company.

The operating budget usually consist of the:

sales budget,

production budget,
manufacturing overhead budget.

However, for a retail company that usually do not produce their products or inventory but purchase them, the Production Budget is usually substituted <em>with</em> Purchasing budget or merchandise inventory to be purchased; meaning since they do not have raw materials they<em> substitute </em>the number of units to be purchased, to the number of units to be produced.

8 0

3 years ago

In a SWOT analysis, potential internal weaknesses are harmful when they identify all key areas that require improvement. Weaknes

MissTica

Answer:

That statement is true.

Explanation:

"Key areas" of the business refers to business activities that directly related in core business operation. These activities are the one with most influence in determining how much products the companies able to sell to the consumers.

Internal weakness in SWOT analysis refers to consist of the things from within the company that can create some sort of damage to the company's operation if not taken care of.

Leaving internal weakness unfixed with heavily damage the productivity of company. Not only that, it could also damage the market's perception toward the company. When the customers have completely lost faith in the quality of company's product, there is almost nothing the company can do to fix it.

5 0

3 years ago

Read 2 more answers

Question 1 of 10

madreJ [45]

Answer:

B. Thanks can have collection agencies seize part of the borrowers income

Explanation: I just got it right for a p e x

5 0

2 years ago

Read 2 more answers

Sales at a fast-food restaurant average $6,000 per day. The restaurant decided to introduce an advertising campaign to increase

kipiarov [429]

Answer:

Yes

Explanation:

The 0.01 percent of the deviation plus the 0.01 percent of the sales average is not enough to get to the $6,300 daily, which means that the factor of the increase sales is the advertising campaign.

4 0

3 years ago

Karen is designing a process for issuing checks and decides that one group of users will have the authority to create new payees

Nataly [62]

Answer:

D. Separation of Duties

Explanation:

Separation of duties also know as segregation of duties refuses that one person he responsible of acquisition of assets, their custody and related record keeping. The process in which Karen is using to prevent fund by separating individuals who as the authority to issue checks is known as separation of duties. It is a form of internal control aimed at reducing risk of errors and frauds.

4 0

3 years ago