Final answer:
The question requires creating journal entries to account for accrued vacation benefits at the fiscal year-end and when an employee takes a vacation. The year-end entry accounts for the total accrued vacation liability, and the subsequent entry reflects the actual cash payment to the employee for their vacation time.
Step-by-step explanation:
The question involves accounting for accrued vacation benefits and recording the vacation time taken by an employee in the next fiscal year for a company, which pertains to financial statements and adjusting entries in accounting, a subset of the business field. The required journal entries are as follows:
December 31 Year-End Adjusting Entry for Accrued Vacation Benefits
Dr Vacation Expense 8,000
Cr Accrued Vacation Payable 8,000
(To record the accrual of vacation benefits for the year.)
Entry on April 1 When an Employee Takes One Week Vacation
Dr Accrued Vacation Payable 500
Cr Cash 500
(To record the payment for an employee's one-week vacation.)
Note: The amounts should have the currency symbol before them, such as $, if needed as per the financial regulations of the country in which the company operates.