Use the following information for questions 34-35.
Silver Ltd. has 35 employees who work 8-hour days and are paid hourly. On January 1, 2020, the company began a program of granting its employees 10 days paid vacation each year. Vacation days earned in 2020 may be taken starting on January 1, 2021. Information relative to these employees is as follows: Silver has chosen to accrue the liability for compensated absences (vacation pay) at the current rates of pay in effect when the vacation pay is earned.
-What is the amount of the Vacation Wages Payable that should be reported at December 31, 2022?
A) $ 39,900
B) $ 45,360
C) $ 47,460
D) $ 47,880

Question

Use the following information for questions 34-35.
Silver Ltd. has 35 employees who work 8-hour days and are paid hourly. On January 1, 2020, the company began a program of granting its employees 10 days paid vacation each year. Vacation days earned in 2020 may be taken starting on January 1, 2021. Information relative to these employees is as follows:  Silver has chosen to accrue the liability for compensated absences (vacation pay) at the current rates of pay in effect when the vacation pay is earned.
-What is the amount of the Vacation Wages Payable that should be reported at December 31, 2022?
A) $ 39,900 
B) $ 45,360 
C) $ 47,460 
D) $ 47,880

Quizplus · Accepted Answer

The correct amount of Vacation Wages Payable is $47,460, which is calculated based on the company's policy and the employees' accrued vacation time as of December 31, 2022.

Use the Following Information for Questions 34-35