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Blue Ice Inc

question 69

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Blue Ice Inc.compensates its employees for certain absences.Employees can receive one day vacation plus one day sick leave for each month worked during the year.Unused vacation days may be carried forward,but unused sick leave expires within the year of employment.Employees are compensated according to their current pay rate.The following data were taken from the records for the year 2014.
Blue Ice Inc.compensates its employees for certain absences.Employees can receive one day vacation plus one day sick leave for each month worked during the year.Unused vacation days may be carried forward,but unused sick leave expires within the year of employment.Employees are compensated according to their current pay rate.The following data were taken from the records for the year 2014.     Compute the amount that should be reported as a liability for compensated absences on December 31,2014.
Compute the amount that should be reported as a liability for compensated absences on December 31,2014.

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Definitions:

Market Rate

The current price or interest rate at which securities, commodities, or currencies are traded in a competitive and public market.

Straight-line Method

A method of allocating a fixed asset's cost evenly over its useful life for the purpose of depreciation.

Par Value

The face value of a bond or stock as stated by the issuing company, which may not reflect its market value.

Semiannual

Occurring twice a year; a term often used in the context of interest payments, dividends, or certain financial reporting periods.

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