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Silver Ltd.has 35 employees who work 8-hour days and are paid hourly.On January 1, 2017, the company began a program of granting its employees 10 days paid vacation each year.Vacation days earned in 2017 may be taken starting on January 1, 2018.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, 2019?
A)$39,900
B)$45,360
C)$47,460
D)$47,880

Question

Use the following information for questions.
Silver Ltd.has 35 employees who work 8-hour days and are paid hourly.On January 1, 2017, the company began a program of granting its employees 10 days paid vacation each year.Vacation days earned in 2017 may be taken starting on January 1, 2018.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, 2019?
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 number of employees eligible for vacation pay as of December 31, 2019.

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