Yellow Cab Co. began operations on January 2, 2010. It employs 15 drivers who work 8-hour days. Each employee earns 10 paid vacation days annually. Vacation days may be taken after January 10 of the year following the year in which they are earned. The average hourly wage rate was $24.00 in 2010 and $25.50 in 2011. The average vacation days used by each driver in 2011 was 9. Yellow Cab Co. accrues the cost of compensated absences at rates of pay in effect when earned.What are the journal entries to record the transactions related to paid vacation days during 2010 and 2011.
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