JST Services employs 50 workers who are each paid $900 per week. JST allows each employee two weeks of paid vacation per year. In addition, the company allows each employee one week of paid sick leave per year. No employees used vacation days or sick leave in the first quarter. In April, a total of three weeks of vacation and one week of sick leave were used by various employees.
Required: a. Prepare the joumal entry to record JST's quarterly liability for compensated absences on March 31 . (Ignore payroll taxes.)
b. Prepare the April 30 journal entry to record the payment of four weeks of payroll, which includes the employee use of compensated absences. (Ignore payroll taxes.)

Question

JST Services employs 50 workers who are each paid $900 per week. JST allows each employee two weeks of paid vacation per year. In addition, the company allows each employee one week of paid sick leave per year. No employees used vacation days or sick leave in the first quarter. In April, a total of three weeks of vacation and one week of sick leave were used by various employees.
Required: a. Prepare the joumal entry to record JST's quarterly liability for compensated absences on March 31 . (Ignore payroll taxes.) 
b. Prepare the April 30 journal entry to record the payment of four weeks of payroll, which includes the employee use of compensated absences. (Ignore payroll taxes.)

Quizplus · Accepted Answer

The Answer of JST Services employs 50 workers who are each paid $900 per week. JST allows each employee two weeks of paid vacation per year. In addition, the company allows each employee one week of paid sick leave per year. No employees used vacation days or sick leave in the first quarter. In April, a total of three weeks of vacation and one week of sick leave were used by various employees.
Required: a. Prepare the joumal entry to record JST's quarterly liability for compensated absences on March 31 . (Ignore payroll taxes.) 
b. Prepare the April 30 journal entry to record the payment of four weeks of payroll, which includes the employee use of compensated absences. (Ignore payroll taxes.)

JST Services Employs 50 Workers Who Are Each Paid $900