Question

Knowledge Check 01 Assume that salaried employees of Mayer, Inc., earn 2 weeks of vacation per year. The salaried employees accrue a total of $160 each pay period. Mayer's first payroll of the year is on January 7. Prepare the January 7 journal entry for Mayer by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.

Answer 1

Vacation Benefits Expense $160

To Vacation Benefits Payable $160

Step-by-step explanation:

The journal entry is shown below:

Vacation Benefits Expense $160

To Vacation Benefits Payable $160

(Being vacation pay expense is recorded)

For recording this we debited the vacation benefits expense as it increased the expense and credited the vacation benefit payable as it also increased the liabilities