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29 October, 15:43

Riverbed Inc. provides paid vacations to its employees.

At December 31, 2020, 24 employees have each earned 2 weeks of vacation time.

The employees' average salary is $690 per week.

Prepare Riverbed's December 31, 2020, adjusting entry.

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Answers (2)
  1. 29 October, 15:51
    0
    Dr Salaries & Wages Expense $33,120

    Cr Salaries & Wages Payable $33 120

    Explanation:

    Riverbed's December 31, 2020, adjusting entry.

    Dr Salaries & Wages Expense $33,120

    Cr Salaries & Wages Payable $33 120

    (24 employees x 2 weeks x $690 = $33,120)
  2. 29 October, 16:12
    0
    Dr. Wages Expense $33,120

    Cr. Wages Payable $33,120

    Explanation:

    When an Expense is accrued it is recorded with the debit entry and a cash payment or a liability is created against this expense. In this Question the wages expense account is debited and Wages payable account is credited as a liability and it will be adjustment at the time of payments.

    As per given Data

    Average Salary per week = $690

    Vocation Time earned = 2 weeks

    Number of Employees = 24 employees

    Total Vocation wages expense = $690 x 2 x 24 = $33,120
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