Compute the liability for vacation pay as of december 31


Compensated Absence-Vacation Pay

General Aviation Company employs six people. Each employee is entitled to three weeks' paid vacation every year the employee works for the company. The conditions of the paid vacation are (a) for each full year of work, an employee will receive three weeks of paid vacation (no vacation accrues for a portion of a year), (b) each employee will receive the same pay for vacation time as the regular pay in the year taken, and (c) unused vacation pay can be carried forward. Based on the following data, compute the liability for vacation pay as of December 31, 2008.

 

 

Cumulative Vacation Taken

Weekly

Employee

Starting Date

as of December 31, 2008

Salary

Marci Clark                    

December 21, 2001

14 weeks

$850

Bradford Sayer                  

July 17, 2005

5 weeks

725

Sorena Williams                 

April 8, 2007

None

650

Jonathan Beecher               

December 17, 2000

18 weeks

800

Brian Giles                     

July 17, 2006

1 week

450

Dale Murphy                   

May 31, 2008

None

500

 

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Taxation: Compute the liability for vacation pay as of december 31
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