Solution-What amount of liability for compensated absences

What amount of liability for compensated absences

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Question - ABC Company has an employee benefit plan for compensated absences that gives employees 10 paid vacation days and 10 paid sick days. Both vacation and sick days can be carried over indefinitely. Employees can elect to receive the payment in lieu of vacation days; however, no payment is given for sick days not taken.

At December 31, 2021, ABC's unadjusted balance of liability for compensated absences was P21,000.it is estimated that there were 150 vacation days and 75 sick days available at December 31 20,21. ABC's employees earn an average of P100 per day.

In its December 31, 2021 Balance Sheet, what amount of liability for compensated absences is ABC required to report?

A. 36,000

B. 22,500

C. 21,000

D. 15,000

Reference no: EM132867933

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What amount of liability for compensated absences

Reference no: EM132867933

Reference no: EM132867933

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