Zennia Company Provides Its Employees with Varying Amount of Vacation

question 29

Multiple Choice

Zennia Company provides its employees with varying amount of vacation per year, depending on the length of employment. The estimated amount of the current year's vacation cost is $135,000. The journal entry to record the adjusting entry required on December 31, the end of the current year, to record the current month's accrued vacation pay is

• A) $135,000
• B) $67,500
• C) $0
• D) $11,250

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Definitions:

Manufacturing Companies

Businesses involved in the transformation of goods, materials, or substances into new products through processes and operations.

Value Basis

The method or perspective from which an item's value is assessed, such as historical cost or market value.

Joint Cost

Costs that are incurred in the process of producing two or more products simultaneously and cannot be separately identified.

Board Feet

Board feet is a unit of measure for the volume of lumber, calculated as width in inches times length in feet times thickness in inches, divided by 12.