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Compensated Absences
During Year 1 (the first year of the company's existence), employees of the company earned vacation days as follows:
Average Wage
Vacation Days
Employee
per Day
Earned This Year
Taken This Year
1
$160
10
2
200
15
3
250
20
5
(1) Make the journal entry necessary at the end of Year 1 to record the unused vacation days earned during the year and (2) make the journal entry necessary in Year 2 to record the use of all of these vacation days. Assume that all employees received a 10% pay raise in Year 2.
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