Answer:
A. Dr Dec. 31. Vacation Benefits Expense $7,800
Cr Vacation Benefits Payable $7,800
B. Dr Aprl. 1 Vacation Benefits Payable $800
Cr Cash $800
Explanation:
(a) Preparation for the December 31 year-end adjusting entry for accrued vacation benefits.
Dr Dec. 31. Vacation Benefits Expense $7,800
Cr Vacation Benefits Payable $7,800
(Being To record the accrual of vacation benefit for the year)
(b) Preparation for the entry on April 1 of the next year in a situation where an employee takes a one-week vacation and is paid the amount of $800 cash for that week.
Dr Aprl. 1 Vacation Benefits Payable $800
Cr Cash $800
(Being To record the payment of vacation benefits for one week)
