58. The terms and conditions of employment with Filler Company include entitlement to share in the staff bonus system, under which 5% of the profit for the year before charging the bonus is allocated to the bonus pool, provided the annual profit exceeds P50,000,000. The profit before accrual of any bonus for the first half of the current year amounts to P40,000,000 and the latest estimate of the profit before accrual of any bonus for the year as a whole is P60,000,000. What amount should be recognized as bonus expense for the first half of the current year? a. 1,500,000 b. 3,000,000 c. 2,000,000 d. 0

58. The terms and conditions of employment with Filler Company include entitlement to share in the staff bonus system, under which 5% of the profit for the year before charging the bonus is allocated to the bonus pool, provided the annual profit exceeds P50,000,000. The profit before accrual of any bonus for the first half of the current year amounts to P40,000,000 and the latest estimate of the profit before accrual of any bonus for the year as a whole is P60,000,000. What amount should be recognized as bonus expense for the first half of the current year? a. 1,500,000 b. 3,000,000 c. 2,000,000 d. 0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Greg Company provides retirement benefits to employees through defined contribution plan. The plan provides that Greg Company shall contribute annually 9% of gross payroll to a funding agency. In addition, the entity is also required to contribute 6% of annual sales exceeding 15,000,000. During 2020, gross payroll of the company was P 6,500,000 and total sales amounted to P 32,000,000. How much is the retirement benefit expense taken to profit or loss for the year 2020? Assuming that during 2020, the company contributed P 1,700,000 to the trustee. How much is the prepaid or accrued benefit arising from the transaction?
Greenwell Ltd. located in Alberta has a workers' compensation premium rate of $4.55 per $100.00of assessable payroll. The actual assessable payroll for the previous year consisted of: regular salaries and wages of $678,750.00, overtime pay of $12,700.00, work related bonuses of $52,000.00, vacation pay of $85,250.00 and taxable benefits of $11,300.00. Estimate the organization's assessment for this year
9
A bonus package pays an employee s1000 at the end of the first semi-annual, $1500 at the end of the second semiannual, and so on, for the first nine years of employment. What is the present worth of the bonus package at 6% per year compounded monthly A s28,233 B) s66,480 $19,090 $47,665
26. Under the state law, company may pay 3% of eligible gross wages or it may reimburse the state directly for actual unemployment claimes. The entity believes that actual unemployment claims will be 2% of eligible gross wages and has choses to reimburse the state. Eligible gross wages are defined as the first 100,000 of gross wages paid to each employee. The entity had 5 employees, each of whom earned P200,000 during the current year. What amount shall be reported as liability for unemployment claims? a. 10,000b. 15,000c. 20,000
Assume that at the beginning of the current year, a company has a net gain-AOCI of $25,600,000. At the same time, assume the PBO and the plan assets are $222,400,000 and $153,500,000, respectively. The average remaining service period for the employees expected to receive benefits is 10 years. What is the amount of amortization to pension expense for the year? $1,968,000. $344,000. $336,000. $689,000.
Required: Below is a payroll sheet for Riverbed Imports for the month of September 2025. The company is allowed a 1% unemployment compensation rate by the state; the federal unemployment tax rate is 0.8% and the maximum for both is $7,000. Assume a 10% federal income tax rate for all employees and a 7.65% FICA tax on employee and employer on a maximum of $142,800. In addition, 1.45% is charged both employer and employee for an employee's wages in excess of $142,800 per employee. Name B.D. Williams D. Raye K. Baker F. Lopez A. Daniels B. Kingston Earnings to Aug.31 $6,900 6,700 7,600 14,800 130,000 135,000 September Income Tax Earnings Withholding $900 800 1,100 1,800 13,900 16,500 FICA Unemployment Tax State Federal 1. Complete the payroll sheet in Excel and make the necessary entry to record the payment of the payroll. 2. Make the entry to record the payroll tax expenses of Riverbed Imports. 3. Make the entry to record the payment of the payroll liabilities created in parts a and b.…
7. SESAME-SEED Company has a bonus agreement which provides that the senior managers will receive an annual bonus of 12% of the net income after bonus and tax. The income tax rate is 30%. The senior managers received ₱250,000 for the current year as bonus. What is the net income before bonus and tax?
16 Assume that at the beginning of the current year, a company has a net gain-AOCI of $60,100,000. At the same time, assume the PBO and the plan assets are $311,000,000 and $453.100.000, respectively. The average remaining service period for the employees expected to receive benefits is 10 years. What is the amount of amortization to pension expense for the year? Multiple Choice $1,479,000 $6,010,000 $14,210,000 $1476.000.
Example 2-25 Kate Kline receives an annual $35,000 base salary for working a certain territory. A sales quota of $800,000 has been set for that territory for the current year. Kline will receive a 6 percent commission on all sales in excess of $800,000. For the current year, the sales in the territory are $1,030,000. The bonus paid Kline would be: Kline's total earnings for the year would be: $13,800 (6% of $230,000) a. The regular annual salary b. The commission c. The total annual earnings $48,800 ($35,000+ $13,800) Wendy Epstein, a sales representative, earns an annual salary of $29,500 and receives a commission on that portion of her annual sales that exceeds $150,000. The commission is 8.5% on all sales up to $50,000 above the quota. Beyond that amount, she receives a commission of 10%. Her total sales for the past year were $295,000. Compute the following amounts: