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JWS Transport Company’s employees earn vacation time at the rate of 1 hour per 40-hour work period. The vacation pay vests immediately (that is, an employee is entitled to the pay even if employment terminates). During 2013, total wages paid to employees equaled $404,000, including $4,000 for vacations actually taken in 2013 but not including vacations related to 2013 that will be taken in 2014. All vacations earned before 2013 were taken before January 1, 2013. No accrual entries have been made for the vacations. No overtime premium and no bonuses were paid during the period.

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