Explore BrainMass

Explore BrainMass

    Accounting Problem for Yates Corporation

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Yates Corporation began operations on January 2, 2010. It employs 15 people who work 8-hour days. Each employee earns 10 paid vacation days annually. Vacation days may be taken after January 10 of the year, following the year in which they are earned. The average hourly wage rate was $24.00 in 2010, and $25.50 in 2011. The average number of vacation days used by each employee in 2011 was nine. Yates Corporation accrues the cost of compensated absences at rates of pay in effect when earned.

    Please prepare journal entries to record the transactions related to paid vacation days during 2010 and 2011.

    © BrainMass Inc. brainmass.com June 4, 2020, 3:19 am ad1c9bdddf
    https://brainmass.com/business/accounting/accounting-problem-yates-corporation-508807

    Solution Preview

    Calculations:

    2010:

    Vacation Wages Payable = $2,880 × 9 = $25,920.
    Wages Expense = 15 × 8 × $24.00 = $2,880; $2,880 × 10 = ...

    Solution Summary

    The expert examines accounting problems for Yates corporation.

    $2.19

    ADVERTISEMENT