Business, 18.03.2021 01:10 salinasroel22

Broderick Company began operations on January 2, 2019. It employs 9 individuals who work 8-hour days and are paid hourly. Each employee earns 10 paid vacation days and 6 paid sick days annually. Vacation days may be taken after January 15 of the year following the year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additional information is as follows: Actual Hourly Wage rate: 2016-$10.00 - 2017-$11
Vacation Days Used by each employee - 2016-0 days and 2017-9 days
Sick Days Used by Each Employee - 2016 -4 days and 2017 5 days

Broderick Company has chosen to accrue the cost of compensated absences at rates of pay in effect during the period when earned and to accrue sick pay when earned.

Required:
a. Prepare journal entries to record transactions related to compensated absences during 2019 and 2020.
b. Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2019 and 2020.

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Answer from: LilFlamingo247

A. 2019

Dr Salaries and Wages Expense $7,200

Cr Salaries and Wages Payable $7,200

2019

DrSalaries and Wages Expense $4,320

Cr Salaries and Wages Payable $4,320

2019

Dr Salaries and Wages Payable $2,880

Cr Cash $2,880

2020

Dr Salaries and Wages Expenses $7,920

Cr Salaries and Wages Payable $7,920

2020

Dr Salaries and Wages Expenses $4,752

Cr Salaries and Wages Payable $4,752

2020

Dr Salaries and Wages Expenses $648

Dr Salaries and Wages Payable $6,480

Cr Cash $7,128

2020

Dr Salaries and Wages Expenses $ 144

Dr Salaries and Wages Payable $3,816

Cr Cash $3,960

B. Vacation Wages Payable at December 31, 2019 $7,200

Sick Pay Wages Payable at December 31, 2019 $1,440

Vacation Wages Payable at December 31, 2020 $8,640

Sick Pay Wages Payable at December 31, 2020 $2,376

Explanation:

(a) Preparation of the journal entries to record transactions related to compensated absences during 2019

2019

Dr Salaries and Wages Expense $7,200

Cr Salaries and Wages Payable $7,200

(9 employees * $10 per hour * 8 hours per day * 10 days = $7,200)

(Record Accrue expenses and liabilities for Vacations)

2019

DrSalaries and Wages Expense $4,320

Cr Salaries and Wages Payable $4,320

(9 employees * $10 per hour * 8 hours per day * 6 days = $4,320)

(Record Accrue expenses and liabilities for Sick Pay)

2019

Dr Salaries and Wages Payable $2,880

Cr Cash $2,880

(9 employees * $10 per hour * 8 hours per day * 4 days = $2,880)

(Record Sick leave paid)

Preparation of the journal entries to record transactions related to compensated absences during 2020

2020

Dr Salaries and Wages Expenses $7,920

Cr Salaries and Wages Payable $7,920

(9 employees * $11 per hour * 8 hours per day * 10 days = $7,920)

(Record Accrue the expense and liability for Vacations)

2020

Dr Salaries and Wages Expenses $4,752

Cr Salaries and Wages Payable $4,752

(9 employees * $11 per hour * 8 hours per day * 6 days = $4,752)

(Record Accrue the expense and liability for Sick Pay)

2020

Dr Salaries and Wages Expenses $648

($7,128-$6,480)

Dr Salaries and Wages Payable $6,480

(9 employees * $10 per hour * 8 hours per day * 9 days = $6,480)

Cr Cash $7,128

( 9 employees * $11 per hour * 8 hours per day * 9 days = $7,128)

(Record Vacation Time paid)

2020

Dr Salaries and Wages Expenses $ 144

Dr Salaries and Wages Payable $3,816

[( 9 employees * $10 per hour * 8 hours per day * 2 days = $1,440)-(9 employees * $11 per hour * 8 hours per day * 3 days = $2,376)]

Cr Cash $3,960

( 9 employees * $11 per hour * 8 hours per day * 5 days = $3,960)

(Record Sick Leave Paid)

B. Computation for the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2019 and 2020

2019

Vacation Wages Payable at December 31, 2019=$0 + $7,200 - $0

Vacation Wages Payable at December 31, 2019 = $7,200

Sick Pay Wages Payable at December 31, 2019=$0 + $4,320 - $2,880

Sick Pay Wages Payable at December 31, 2019= $1,440

2020

Vacation Wages Payable at December 31, 2020=$7,200 + $7,920 - $6,480

Vacation Wages Payable at December 31, 2020 = $8,640

Sick Pay Wages Payable at December 31, 2020=$1,440 + $4,752 - $3,816

Sick Pay Wages Payable at December 31, 2020= $2,376

Answer from: Quest

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

$capital * (1+0.045)^{28} = 48,613.24$

now clearing the formula to solve for capital we got:

$capital = \frac{48,613.24}{(1+0.045)^{28}}$

and we reach the answer investment = $14,174.20

Answer from: Quest

answer; at prices that violate government price regulations;

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Broderick Company began operations on January 2, 2019. It employs 9 individuals who work 8-hour days...

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