Dana Company has 25 employees who work 8-hour days and are paid hourly. On January 1, 2021, the company began a program of granting its employees 9 days of paid vacation each year. Vacation days earned in 2021 may first be taken on January 1, 2022. Information related to these employees is as follows: Hourly Year Wages Vacation Days Earned by Each Employee Vacation Days Used Each Employee 2021 $25.80 0 2022 27.00 8 9 9 Dana Company has chosen to accrue the liability for compensated absences at the current rates of pay in effect when the compensated time is earned. What is the balance of liability for compensated absences that should be reported on December 31, 2022? OA. $53,760. O B. $92,880. O C. $97,200. O D. $48,600.
Dana Company has 25 employees who work 8-hour days and are paid hourly. On January 1, 2021, the company began a program of granting its employees 9 days of paid vacation each year. Vacation days earned in 2021 may first be taken on January 1, 2022. Information related to these employees is as follows: Hourly Year Wages Vacation Days Earned by Each Employee Vacation Days Used Each Employee 2021 $25.80 0 2022 27.00 8 9 9 Dana Company has chosen to accrue the liability for compensated absences at the current rates of pay in effect when the compensated time is earned. What is the balance of liability for compensated absences that should be reported on December 31, 2022? OA. $53,760. O B. $92,880. O C. $97,200. O D. $48,600.
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter10: Payroll Register (pr)
Section: Chapter Questions
Problem 4R
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Transcribed Image Text:Dana Company has 25 employees who work 8-hour days and are paid hourly. On January 1, 2021, the
company began a program of granting its employees 9 days of paid vacation each year. Vacation days
earned in 2021 may first be taken on January 1, 2022. Information related to these employees is as
follows:
Hourly
Year
Wages
Vacation Days Earned
by Each Employee
Vacation Days Used
Each Employee
2021
$25.80
0
2022
27.00
8
9
9
Dana Company has chosen to accrue the liability for compensated absences at the current rates of pay in
effect when the compensated time is earned.
What is the balance of liability for compensated absences that should be reported on December 31,
2022?
A. $53,760.
OB. $92,880.
O C. $97,200.
OD. $48,600.
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