Compensated Absences Mathewson Company began operations on January 2, 2010. It e

Question

Compensated Absences Mathewson Company began operations on January 2, 2010. It employs 9 individuals who work 8-hour days and are paid hourly. Each employee earns 10 paid vacation days and 6 paid sick days annually. Vacation days may be taken after January 15 of the year following the year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additional information is as follows.

Actual Hourly:
2010 - 12.00
2011 - 13.00

Vacation Days Used:
2010 - 0
2011 - 9

Sick Days Used:
2010 - 4
2011 - 5

Matthewson Company has chosen not to accrue paid sick leave until used, and has chosen to accrue vacation time at expected future rates of pay without discounting. The company used the following projected rates:

Year when earned: Future rates used to accrue vacation pay:
2010 12.90
2011 13.70

(a) Prepare journal entries to record transactions related to compensated absences during 2010.

(b) Prepare journal entries to record transactions related to compensated absences during 2011.

Explanation / Answer

for 2010  here wage rate i have taken for 2010 the avarage is [$12.80+0+4] / 3 = 16.80/3 =$5.6 here 10 individula emplyoyees have 16 days paid leaves = 16*8*10employees =1280*$5.6 total amount of wages payable = $7168 and contion to pay on the base of hour rate... journal enrtry for wages payable in 2010   (dr)wages    $7168             (cr) wages payable 7168    for 2011   here wage rate i have taken for 2011 the avarage is [$13.80+9+5] / 3 = 27.8/3 =$9.27 here 10 individula emplyoyees have 16 days paid leaves = 16*8*10employees =1280*$9.26 total amount of wages payable = $7168 and contion to pay on the base of hour rate... journal enrtry for wages payable in 2010   (dr)wages    $11865.6            (cr) wages payable 11865.6  here wage rate i have taken for 2011 the avarage is [$13.80+9+5] / 3 = 27.8/3 =$9.27 here 10 individula emplyoyees have 16 days paid leaves = 16*8*10employees =1280*$9.26 total amount of wages payable = $7168 and contion to pay on the base of hour rate... journal enrtry for wages payable in 2010   (dr)wages    $11865.6            (cr) wages payable 11865.6   2) vacation wage payble 2010 vacation days -10 working hours = 8 for 80 hours at the rate of $5.6 for 10 members $448*10 =$4480   sick pay wage payble for 2010 sick days 6 working hours a day = 8 total 6*8 =48 hours wage paybale for sick days = 268.8 for 10 members = 2680   vacation wage payble 2011 vacation days -10 working hours = 8 for 80 hours at the rate of $9.26 for 10 members $*10 =$7408   sick pay wage payble for 2011 sick days 6 working hours a day = 8 total 6*8 =48 hours wage paybale for sick days = 48hors *9.26 for 10 members = $4444.8 vacation wage payble 2011 vacation days -10 working hours = 8 for 80 hours at the rate of $9.26 for 10 members $*10 =$7408   sick pay wage payble for 2011 sick days 6 working hours a day = 8 total 6*8 =48 hours wage paybale for sick days = 48hors *9.26 for 10 members = $4444.8

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