If someone could help out it would be really appreciated Sti

If someone could help out it would be really appreciated

Stiner Company has 20 employees who work 8-hour days and are paid hourly. On January 1, 2010, the company began a program of granting its employees 10 days\' paid vacation each year. Vacation days earned in 2010 may first be taken on January 1, 2011. Information relative to these employees is as follows: Vacation Days Used by Each Employee Hourly Vacation Days Earned Year Wages 2010 $12.90 2011 13.50 2012 14.20 by Each Employee 10 10 10 12 Stiner has chosen to accrue the liability for compensated absences at the current rates of pay in effect when the compensated time is earned What is the amount of the accrued liability for compensated absences that should be reported at December 31, 2010, December 31, 2011, and December 31, 2012? What is the amount of the expense for compensated absences that should be reported for 2010, 2011 and 2012? . Prepare journal entries for 2012

Solution

Computation of Acrued liability for compensated absences 31/12/2010 31/12/2011 31/12/2012 Vacation days earned by each employees 10Days 10Days 10Days No of hours in a day 8 Hour 8 Hour 8 Hour Total Hours for 10 vacation days 80 Hour 80 Hour 80 Hour Hourly rate $12.90 $13.50 $14.20 Total amount for compensated absences $1,032.00 $1,080.00 $1,136.00 ( total Hour* Hourly rate) Computation of Amount of expenses for compensated absences 31/12/2010 31/12/2011 31/12/2012 No of days used by each employees 0 days 6 days 12 day/ 10 days ( eligible) No of hours in a day 8 Hour 8 Hour 8 Hour Total Hours for vacation days used 0 Hour 48 Hour 80 hour Hourly rate $12.90 $13.50 $14.20 Total amount of expenses for compensated absences $0.00 $648.00 $1,136.00 Journal Entry Date Detail Debit Credit 31/12/202 Provision for Vacation compensation 1136 Expenses for Vacation days earned 1136 ( utilised voacation expenses) 31/12/2012 Employee benefit 1136 Provision for Vacation compensation 1136 ( new provision created )