Bob Is a Massage Therapist Working for a Company with Three

question 53

Essay

Bob is a massage therapist working for a company with three employees.After a year,he asks to take a vacation only to find out that vacations are not offered by the company.Bob argues that he is due 2 weeks of vacation based on customary vacations received elsewhere.Discuss the legal,practical,and ethical issues.

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Definitions:

Adjusting Entries

Journal entries made in an accounting period to update the records for accruals and deferrals that have not been fully recorded during the period.

Deferral

A future revenue or expense initially recorded as a liability or asset.

Prepaid Rent

An expense that is paid in advance for the use of property or equipment, recognized over the period of usage.

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenses to the periods in which they actually occurred.