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1.On January 1, 2013, Poplar Fabricators Corporation agreed to grant its employees two weeks' vacation each year, with the stipulation that vacations earned each year can be taken the following year. For the year ended December 31, 2013, Poplar Fabricators' employees each earned an average of $900 per week. Seven hundred vacation weeks earned in 2013 were not taken during 2013.Required:1. Prepare the appropriate adjusting entry for vacations earned but not taken in 2013.2. Suppose that, by the time vacations actually are taken in 2014, wage rates for employees have risen by an average of 5 percent from their 2013 level. Also, assume wages earned in 2014 (including vacations earned and taken in 2014) were $31 million. Prepare a journal entry that summarizes 2014 wages and the payment for 2013 vacations taken in 2014.
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