Question: 1. Chester Co.'s salaried employees earn four weeks vacation per year. It pays $192,000.12 in total employee salaries for 52 weeks but its employees work only 48 weeks. This means Chester's total weekly expense is $4,000 ($192,000y48 weeks) instead of the $3,692.31 cash paid weekly to the employees ($192,000y52 weeks). Record Chester's weekly vacation benefits expense.
2. Perfect Systems borrows $94,000 cash on May 15, 2011, by signing a 60-day, 12% note.
1. On what date does this note mature?
2. Suppose the face value of the note equals $94,000, the principal of the loan. Prepare the journal entries to record (a) issuance of the note and (b) payment of the note at maturity.