Athena Company's salaried employees earn two weeks of vacation per year.It pays $858,000 in total employee salaries for 52 weeks but its employees work only 50.Record Athena Company's weekly journal entry to record the vacation expense:

Question

Quizplus · Accepted Answer

Since employees earn two weeks of vacation per year, and the company pays for 52 weeks but the employees only work 50, the vacation expense for the year would be:

2 weeks vacation/year x $858,000 total salaries/52 weeks x 2 weeks/50 weeks worked = $17,160

Therefore, the journal entry to record the vacation expense would be:

Debit Vacation Benefits Expense $17,160
Credit Vacation Benefits Payable $17,160

Option B is the correct answer as it reflects the correct amount for the vacation expense, based on the calculations above.

Athena Company's Salaried Employees Earn Two Weeks of Vacation Per