question archive Bramble Limited began operations on January 2, 2019
Bramble Limited began operations on January 2, 2019
Subject:BusinessPrice: Bought3
Bramble Limited began operations on January 2, 2019. The company employs 11 individuals
who work 8 hour days and are paid hourly. Each employee earns 10 paid vacation days and 7 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 RateVacation Days Used
by Each EmployeeSick Days Used
by Each Employee201920202019202020192020$20$210956
Assume that Bramble Limited has chosen not to recognize paid sick leave until it is used, and has chosen to accrue vacation time at expected future rates of pay without discounting. Bramble uses the following projected rates to accrue vacation time:
Year in Which Vacation Time
Was EarnedProjected Future Pay Rates Used
to Accrue Vacation Pay2019$20.75 per hour2020$21.60 per hour
Prepare the journal entries to record the transactions related to vacation entitlement during 2019 and 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
2019
(To accrue the expense and liability for vacations)
2019
(To record vacation time paid)
2020
(To accrue the expense and liability for vacations)
2020
(To record vacation time paid)
eTextbook and Media
List of Accounts
Prepare the journal entries to record the transactions related to sick days during 2019 and 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
2019
2020
eTextbook and Media
List of Accounts
Calculate the amounts of any liability for vacation pay and sick days that should be reported on the SFP at December 31, 2019, and 2020.
20192020Liability for vacation pay$ $ Liability for sick pay$ $
