Reference no: EM133116966

Question - PANASONIC Company compensates its employees for certain absences for vacation and sickness. Employees are entitled to one-day vacation plus one-day sick leave for each month worked during the year. Unused vacation days may be carried forward, but unused sick leave does not accumulate. Employees are compensated according to their pay in effect at the time of the leave. The following data were taken from the records for the year 2018.

Employee	Date of Initial	Unused	Vacation	Sick leave	Rate per day
	Employment	Vacation -1/1/2018	taken in 2018	taken in 2018
Mr. A	01/10/2016	18	7	2	P1,000
Mr. B	07/28/2017	9	8	7	800
Mr. C	09/01/2018	0	4	8	600
Mr. D	07/01/2018	0	2	1	400

Required -

1. Compute the balance of the account Liability for Compensated Absences at December 31, 2017.

2. Compute the amount of Employee benefit expense for sick leave and vacation leave for the year 2018.

3. Compute the balance of liability for compensated absences at December 31, 2018.

4. Prepare the entry to record the above transactions.