# Sunland Co. began operations o

Sunland Co. began operations on January 2, 2020. It employs 17people who work 8-hour days. Each employee earns 10 paid vacationdays annually. Vacation days may be taken after January 10 of theyear following the year in which they are earned. The averagehourly wage rate was \$20 in 2020 and \$21.75 in 2021. The averagevacation days used by each employee in 2021 was 9. Sunland Co.accrues the cost of compensated absences at rates of pay in effectwhen earned.Prepare journal entries to record the transactions related to paidvacation days during 2020 and 2021

Given Number of Employees=17 people

Employees Salary=10 vacation day annually

Number of Hours= 8Hours

So average hourly wage rate in  2020= \$20

So average hourly wage rate in  2021= \$21.75

The average vacation days used by each employee in 2021 was9.days

Following is the Journal Entries  related topaid vacation days during 2020 and 2021

 Date Account Title Debit(\$) Credit(\$) 2020 Wages Expenses \$27,200 Vacation Wages Payable \$27200 (17 people*8 hours*10days*20) (Recording of the vacation wages in 2020) 2021 Wages Expenses \$2,142 Vacation Wages Payable (17people*8hours*9days*\$20) \$24,480 Cash(17 people*8 hours*9 days*21.75) \$26,622 (Being cash paid for vacation wages) 2021 Wages Expenses \$29,580 Vacation Wages Payable \$29,580 (17 people*8hours*10days*21.75) (Recording of vacation wages due in 2021)

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