Chapter 13 - Test Bank 178 - 2013 No accrual entries have...

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120. MullerB Company's employees earn vacation time at the rate of 1 hour per 40-hour work period. The vacation pay vests immediately, meaning an employee is entitled to the pay even if employment terminates. During 2013, total wages paid to employees equaled $808,000, including $8,000 for vacations actually taken in 2013, but not including vacations related to 2013 that will be taken in 2014. All vacations earned before 2013 were taken before January 1,
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Unformatted text preview: 2013. No accrual entries have been made for the vacations. Required: Prepare the appropriate adjusting entry for vacations earned but not taken in 2013. AACSB: Analytic AICPA FN: Measurement Blooms: Apply Difficulty: 3 Hard Learning Objective: 13-03 Characterize accrued liabilities and liabilities from advance collection and describe when and how they should be recorded. Topic: Accrued liabilities...
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