A company gives each of its 90 employees (assume they were all employed continuously through 2022 and 2023) 12 days of vacation a year if they are employed at the end of the year. The vacation accumulates and may be taken starting January 1 of the next year. The employees work 8 hours per day. In 2022, they made $17.50 per hour and in 2023 they made $20 per hour. During 2023, they took an average of 9 days of vacation each. The company's policy is to record the liability existing at the end of each year at the wage rate for that year. Under U.S. GAAP, what amount of vacation liability would be reflected on the 2022 and 2023 balance sheets, respectively? OA. $172,800; $194,400 OB. $172,800; $43,200 OC. $151,200, $43,200 OD. $151,200, $210,600

A company gives each of its 90 employees (assume they were all employed continuously through 2022 and 2023) 12 days of vacation a year if they are employed at the end of the year. The vacation accumulates and may be taken starting January 1 of the next year. The employees work 8 hours per day. In 2022, they made $17.50 per hour and in 2023 they made $20 per hour. During 2023, they took an average of 9 days of vacation each. The company's policy is to record the liability existing at the end of each year at the wage rate for that year. Under U.S. GAAP, what amount of vacation liability would be reflected on the 2022 and 2023 balance sheets, respectively? OA. $172,800; $194,400 OB. $172,800; $43,200 OC. $151,200, $43,200 OD. $151,200, $210,600

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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A company gives each of its 75 employees (assume they were all employed continuously through 2017 and 2018) 12 days of vacation a year if they are employed at the end of the year. The vacation accumulates and may be taken starting January 1 of the next year. The employees work 8 hours per day. In 2017, they made $24.50 per hour and in 2018 they made $28 per hour. During 2018, they took an average of 9 days of vacation each. The company's policy is to record the liability existing at the end of each year at the wage rate for that year. What amount of vacation liability would be reflected on the 2017 and 2018 balance sheets, respectively? A. $201,600; $245,700 B. $201,600; $252,000 C. $176,400; $252,000 D. $176,400; $245,700
Complete ALL requirements and ROUND ALL AMOUNTS TO NEAREST DOLLAR
Ivanhoe Company has 60 employees who work 8-hour days and are paid hourly. On January 1, 2025, the company began a program of granting its employees 10 days of paid vacation each year. Vacation days earned in 2025 may first be taken on January 1, 2026. Information relative to these employees is as follows: Hourly Year Wages Vacation Days Earned by Each Employee Vacation Days Used by Each Employee 2025 $27.50 10 0 2026 29.50 10 8 2027 32.50 10 10 Ivanhoe has chosen to accrue the liability for compensated absences at the current rates of pay in effect when the compensated time is earned. What is the amount of the accrued liability for compensated absences that should be reported at December 31, 2027?
The City of Breneman allows employees to accrue 30 days of vacation leave. Employees receive the accrued vacation leave in pay when they terminate employment or retire. The value of the unused vacation pay was $50,000 at the beginning of the year and $40,000 at the end of the year. Of the ending balance, $15,000 was owed to employees who retired during the last month of the fiscal year, and this amount will be paid in the first month of the next fiscal year. What amount of vacation pay liability will be recorded in the general fund as of the end of the fiscal year? $10,000 $40,000 None of these $50,000 $15,000
Bush Enterprises International BEI hires 10,000 employees. Each employee earns twenty days of paid vacation per calendar year. Up to five days of this may be carried forward and taken in the following vear but cannot be carried forward any further. Employees are not paid for any vacations they do not take. As at December 31, 2022, 9,130 employees had used their full vacation entitlement for 2022. The remaining employees are carrying forward an average of 3 days each and they are all expected to use these vacation days. Half of the employee group earn $300 per day and the other half work 8 hour days and earn $15 per hour and this is representative of those who still have leftover vacation earned. What amount of liability for accrued vacation pay should appear in the company's balance sheet at December 31, 2022 ? a. $548,100 b. $783.000 c. $913,500 d. $313,200 e. None of the above Plz answer fast without plagiarism
Crane Inc. has an annual unlimited vacation policy for its employees and the eligibility requirement is to be an employee of the company. Crane has 40 employees with average annual salaries of $50400. Crane expects its employees to take vacation evenly during the year. In the previous year, its employees took on average 4 weeks of vacation. How much vacation liability should be on the balance sheet at June 30, 2025? O $168000 O $336000 O $0 O $84000
A union contract specifies that each worker will receive a 5% pay increase each year for the next 30 years. One worker is paid $35,000 the first year. What is this person’s total lifetime salary over a 30-year period?
Hahaah
Bellward Company grants vacation time of two weeks to those employees who have worked for the company one complete year. After 10 years of service, employees receive four weeks of vacation. The monthly payroll for January totals $320,000, of which 70% is payable to employees with 10 or more years of service. On January 31, record the January expense arising from the vacation policy of the company. (Round the final answers to the nearest whole dollar.) No 1 Date Jan 31 Benefits expense General Journal Estimated vacation payable Debit 96,000 X Credit 96,000 X
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Garland Inc. offers a new employee a single-sum signing bonus at the date of employment, June 1, 2021. Alternatively, the employee can receive $39,000 at the date of employment plus $10,000 each June 1 for five years, beginning in 2025. Assuming the employee's time value of money is 9% annually, what single amount of the employment date would make the options equally desirable? (EV. of $1. PV of $1. EVA of $1. PVA of $1 EVAD of 51 and PVAD of 5) (Use appropriate factor(s) from the tables provided.) Pr
Pharoah Co. began operations on January 2, 2025. It employs 17 people who work 8-hour days. Each employee earns 11 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 $19.00 in 2025 and $20.50 in 2026. The average vacation days used by each employee in 2026 was 10. Pharoah Co. accrues the cost of compensated absences at rates of pay in effect when earned. Prepare journal entries to record the transactions related to paid vacation days during 2025 and 2026. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date 2025 2026 > Account Titles and Explanation Salaries and Wages Expense Salaries and Wages Payable Salaries and Wages…