Nash Company began operations on January 2, 2019. It employ…
Nash Company began operations on January 2, 2019. It employs 10 individuals who work 8-hour days and are paid hourly. Each employee earns 9 paid vacation days and 6 paid sick days annually. Vacation days may be taken after January 11 of the year following the year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate. Nash Company records both vacation pay and sick pay as compensated absences. Nash Company accrues the cost of compensated absences at rates of pay in effect during the period when the absences are earned. Additional information is as follows: What is the balance in liabilities for compensated absences as of the end of the year, 2019?