Compensated Absence-Vacation Pay
General Aviation Company employs six people. Each employee is entitled to three weeks' paid vacation every year the employee works for the company. The conditions of the paid vacation are (a) for each full year of work, an employee will receive three weeks of paid vacation (no vacation accrues for a portion of a year), (b) each employee will receive the same pay for vacation time as the regular pay in the year taken, and (c) unused vacation pay can be carried forward. Based on the following data, compute the liability for vacation pay as of December 31, 2008.
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Cumulative Vacation Taken
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Weekly
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Employee
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Starting Date
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as of December 31, 2008
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Salary
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Marci Clark
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December 21, 2001
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14 weeks
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$850
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Bradford Sayer
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July 17, 2005
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5 weeks
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725
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Sorena Williams
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April 8, 2007
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None
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650
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Jonathan Beecher
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December 17, 2000
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18 weeks
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800
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Brian Giles
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July 17, 2006
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1 week
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450
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Dale Murphy
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May 31, 2008
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None
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500
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