Qualpoint provides its employees two weeks of paid vacation per year. As of December 31, 65 employees have earned two weeks of vacation time to be taken the following year. If the average weekly salary for these employees is $1,140, what is the required journal entry?

Question

Quizplus · Accepted Answer

The correct journal entry to record the accrued vacation time is to debit Salaries and Wages Expense for $148,200 and credit Salaries and Wages Payable for $148,200. This is calculated as 65 employees * 2 weeks * $1,140/week = $148,200. This records the expense and liability for the vacation time earned by employees.

Qualpoint Provides Its Employees Two Weeks of Paid Vacation Per