Question

Qualpoint provides its employees two weeks of paid vacation per year. As of December 31, 65 employees have earned two weeks of vacation time to be taken the following year. If the average weekly salary for these employees is $960, what is the required journal entry?

a. Debit Salaries and Wages Expense for $124,800 and credit Salaries and Wages Payable for $124,800.
b. No journal entry required.
c. Debit Salaries and Wages Payable for $124,295 and credit Salaries and Wages Expense for $124,295.
d. Debit Salaries and Wages Expense for $62,400 and credit Salaries and Wages Payable for $62,400.

Answer 1

The required journal entry for Qualpoint to record the earned vacation time for its employees is: Debit Salaries and Wages Expense for $124,800 and credit Salaries and Wages Payable for $124,800. This entry recognizes the expense of the earned vacation time and reduces the liability of Salaries and Wages Payable.

Step-by-step explanation:

The required journal entry for Qualpoint to record the earned vacation time for its employees is:

Debit Salaries and Wages Expense for $124,800 and credit Salaries and Wages Payable for $124,800.

This entry recognizes the expense of the earned vacation time, which is an employee benefit, and reduces the liability of Salaries and Wages Payable. The total expense of $124,800 is calculated by multiplying the average weekly salary of $960 by the number of employees (65) and the number of weeks of vacation (2).