Claymont Company instituted a vacation and sick pay policy on January 1, 2018. Thirty employees,...
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Accounting
Claymont Company instituted a vacation and sick pay policy on January 1, 2018. Thirty employees, whose salaries averaged $100 per day, were covered under the plan. The policy allows each employee five days of sick pay and twelve days of vacation pay per year. The sick pay accumulates up to a ten-day maximum. Vacation pay accumulates without a maximum. The sick pay vests, but vacation pay does not. A total of 400 days of sick and vacation days were taken during 2019.
Required:
Prepare the December 31, 2019 year-end accrual for compensated absences.
CHART OF ACCOUNTSClaymont CompanyGeneral Ledger
ASSETS
111
Cash
121
Accounts Receivable
141
Inventory
152
Prepaid Insurance
181
Equipment
189
Accumulated Depreciation
LIABILITIES
211
Accounts Payable
222
Liability for Compensated Absences
231
Salaries Payable
250
Unearned Revenue
261
Income Taxes Payable
EQUITY
311
Common Stock
331
Retained Earnings
REVENUE
411
Sales Revenue
EXPENSES
500
Cost of Goods Sold
511
Insurance Expense
512
Utilities Expense
521
Salaries Expense
532
Bad Debt Expense
540
Interest Expense
541
Depreciation Expense
559
Miscellaneous Expense
910
Income Tax Expense
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