Claymont Company instituted a vacation and sick pay policy on January 1, 2014. Thirty employees, averaging $100 per day per employee, were covered under the plan. The policy allows each employee five days of sick pay and twelve days of vacation pay per year. The sick pay accumulates up to a ten-day maximum. Vacation pay accumulates without a maximum. The sick pay vests, but vacation pay does not. A total of 400 days of sick and vacation days were taken during 2014.
Required:
Prepare the December 31, 2014 year-end accrual for compensated absences.

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The Answer of Claymont Company instituted a vacation and sick pay policy on January 1, 2014. Thirty employees, averaging $100 per day per employee, were covered under the plan. The policy allows each employee five days of sick pay and twelve days of vacation pay per year. The sick pay accumulates up to a ten-day maximum. Vacation pay accumulates without a maximum. The sick pay vests, but vacation pay does not. A total of 400 days of sick and vacation days were taken during 2014.
Required:
Prepare the December 31, 2014 year-end accrual for compensated absences.

Claymont Company Instituted a Vacation and Sick Pay Policy on January