Recording and Reporting Compensated Absences Aloha Company has a personnel policy that allows each employee with at leas

[answerhappygod]

Recording And Reporting Compensated Absences Aloha Company Has A Personnel Policy That Allows Each Employee With At Leas 1 (76.86 KiB) Viewed 40 times

Recording and Reporting Compensated Absences Aloha Company has a personnel policy that allows each employee with at least one year's employment, 20 days vacation time and two holidays with regular pay. Unused days are carried over to the next year. If not taken during the next year, the vacation and holiday times are lost. Aloha's accounting period ends December 31. At the end of 2020, the personnel records showed the following: Vacations Carried over to 2021 Total Days Total Salaries 70 $16.900 Holidays Camed over to 2021 Total Days Total Salaries 10 52.590 During 2021, all of the 2020 vacation time that was carried over and eight days of the holiday time that was carried over were taken. Salary increases in 2021 for these employees relating to the days carried over amounted to $1,600. Total cash wages paid were: 2020, $1,780,000; and 2021, $1,860,000. There was no carryover of vacation time earned in 2021, Required a. Provide all of the entries for Aloha Company related to salaries and compensated absences during 2020 and 2021. Disregard payroll taxes. Note: List multiple debits or credits (when applicable) in alphabetical order. Date Account Name Dr. Cr. Dec 31, 2020 Salaries Experse 2.580 x Accrued Campersation 2,580 x To accrue for compensated absences 2023 Salaries Exnerse D Cash 1,780,000 To record was paid in 2020 2021 Accued Compensation 19,340 0 Salarios Ferse 7,580 x Cash 2,580 K To record wegges paid in 2021 امي ) . . D b. Show how the effects of the above transactions should be reported in the 2020 and 2021 financial statements of Aloha. 2020 Balance Sheet, Dec. 31 Current abilities Accrued Compensation Income Statement Expenses Salaries Expense 19,393 2020 2021 = $ 1.780,000 x $ 1.860,000 x Check