Employees earn vacation pay at the rate of one day per month.During the month of June,10 employees qualify for one vacation day each.Their average daily wage is $150 per day.Which of the following is the necessary adjusting journal entry to record the June vacation benefits?
A) Debit Vacation Benefits Expense $1,500;credit Prepaid Vacation Benefits $1,500.
B) Debit Vacation Benefits Expense $1,500;credit Vacation Benefits Payable $1,500.
C) Debit Payroll Tax Expense $1,500;credit Payroll Taxes Payable $1,500.
D) Debit Prepaid Vacation Benefits $1,500;credit Vacation Benefits Payable $1,500.
E) Debit Vacation Benefits Payable;credit Vacation Benefits Expense $1,500.
Correct Answer:
Verified
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