Tryst,Inchas a Policy of Accruing $2,300 for Every Employee as a Vacation

question 185

Multiple Choice

Tryst,Inc.has a policy of accruing $2,300 for every employee as a vacation benefit.Sarah,an employee,took a vacation.Which of the following is the correct journal entry for the vacation benefit paid?

• A) \[\begin{array} { | c | r | r | }
• \hline \text { Vacation Benefits Payable } & 1,917 & \\
• \hline \text { Vacation Benefits Expense } & & 1,917 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Vacation Benefits Expense } & 2,300 & \\
• \hline \text { Cash } & & 2,300 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Vacation Benefits Payable } & 2,300 & \\
• \hline \text { Cash } & & 2,300 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | r | r | }
• \hline \text { Vacation Benefits Expense } & 1,917 & \\
• \hline \text { Vacation Benefits Payable } & & 1,917 \\
• \hline
• \end{array}\]

---

Definitions:

Gold Standard

Policy at various points in American history by which the value of a dollar is set at a fixed price in terms of gold (in the post–World War II era, for example, $35 per ounce of gold).

Gilded Age

A period in late 19th century American history characterized by rapid economic growth, especially in the North and West, but also marked by stark social inequalities and lavish lifestyles of the elite.

Business And Banks

Involves commercial organizations and financial institutions that deal with money, lending, and other financial services.

Hollywood Movies

Cinematic works produced and distributed by the film industry in Hollywood, recognized for shaping visual culture and entertainment globally.