360,135 views
39 votes
39 votes
Athena Company's salaried employees earn two weeks of vacation per year. It pays $910,000 in total employee salaries for 52 weeks but its employees work only 50. Record Athena Company's weekly journal entry to record the vacation expense:

User Wagner Sales
by
2.8k points

1 Answer

19 votes
19 votes

Answer:

If $910,000 is paid as employee salary for the year then the weekly salary is:

= 910,000 / 52

= $17,500

The cost of 2 vacation weeks is therefore:

= 17,500 * 2

= $35,000

There are 50 weeks to be worked so vacation expense needs to be apportioned to these weeks:

= 35,000 / 50

= $700

Weekly journal entry is:

Date Account Title Debit Credit

XX-XX-XXXX Vacation Benefits Expense $700

Vacation Benefits Payable $700

User Bertvan
by
3.3k points