Test: Chapter 11 Test This Question: 3 pts ime Remaining: 01:10:44 Submil Teat 1
ID: 2796760 • Letter: T
Question
Test: Chapter 11 Test This Question: 3 pts ime Remaining: 01:10:44 Submil Teat 10of 15(6completel This Test: 45 pts possible Ronaid Industries has ten employees. Each employee earns two vacation days a month Ronald pays its employses a weeky salary of $2.750 for a ive-day workweek Determine the amount of vacation expense for one month. 2. Joumalize the entry to accrue the vacation expense for the month Requirement 1·Determine the amort of vacation expense for one month. Select the comect formula and ealculate Ronald Industries' vacation expense for one month. (Abbreviations used: Ees Employees Mo. Month Wk Requirement 2. Journalize the entry to accrue the vacation expense for the month (Reoord debits first, then credits Select the explanation on the last ine of the journal entry table.) Accounts and Explanation Debit Credit Choose from any list or enter any number in the input fields and then consinue to the next question Activity Details Last Visited Dec 3, 2017 11.20 PM MacBook FI F3 F2 000 F4 2 4Explanation / Answer
(1).
Monthly vacation expense = $1100
Explanation;
(Note: it is clearly given in the question that $2750 salary is for all employees. If we assume that $2750 is for one employee then monthly vacation expense will be $11000.)
Total employees = 10
Each employee earn vacation in a month = 2 days
Total vacations earned by 10 employees in a month (10 * 2) = 20 days
Total weekly salary paid = $2750
Thus per day salary ($2750 / 5) = $550
But it is also given that $2750 weekly salary is for 10 employees hence per employee per day salary will be (550 / 10) = $55
Now let’s calculate vacation expense for the month;
(Per day salary * Total vacation days in months)
($55 * 20) = $1100
(2).
Date
Accounts & Explanation
Debit
Credit
Vacation Benefits Expenses
1100
Vacation Benefits Payable
1100
(To record vacation benefits expense)
Date
Accounts & Explanation
Debit
Credit
Vacation Benefits Expenses
1100
Vacation Benefits Payable
1100
(To record vacation benefits expense)
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