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Question - What journal entries are needed to reflect the following? Assume the salary is $1,000 per week, s/he earns four weeks PTO annually, accruing it at a rate of 1/12 per month, and the employee can take PTO as earned.
a. Each month, record salary and PTO expense.
b. In year 1, employee rolls over two weeks PTO.
c. In year 2, employee elects to take accrued PTO as days off while rolling over two weeks of current PTO to next year.
d. In year 2, employee receives a check for the prior year's unused PTO while rolling over two weeks of current PTO to next year.
e. In year 2, employee takes prior year accrued PTO as time off and uses all of current year's PTO.
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