Birdle Company instituted a vacation and sick pay policy on 1-1-10. Thirty employees averaging $100 per day per employee were coveret under plan. The policy allows each employee 5 days of sick pay and 12 days of vacation per year. The monthly salary wage expense is $75,000.00. The total of 400 days of sick and vacation days were taken during 2010.
Prepare the 1/31/10 accrual entries assuming no time has been used, and the 12/31/10 accruals for compensated absences