Angel Corporation gives three weeks' paid vacation to each employee who has worked at the company for one year. Based on the studies of employee turnover and previous experience, management estimates that 65 percent of the employees will qualify for vacation pay this year.
1. Assume that Angel's July payroll is $150,000, of which $10,000 is paid to employees on vacation. Figure the estimated employee vacation benefit for the month. Also prepare an entry in journal form to record the employee benefit for July and the pay to employees on vacation.