Ann is an employee of Nike She is paid her monthly salary of $10,000 on December 31, 2023. Personal income taxes are deducted and withheld by the employer amounting to $4,000. Canada Pension Plan (CPP) deductions of $495, union dues of $20, employment insurance premiums (El) of $130, and private health insurance premiums of $100 are also deducted. Nike is required to contribute the following amounts to the applicable agency by January 15 of the next year: CPP 100% of employee deductions El 140% of employee deductions Private health insurance 200% of employee deductions Post-retirement benefits $1,000 Required: 1. Prepare a transactions worksheet to record the events on December 31 and January 15. 2. Calculate the amount of compensation expense that would be reported on nike 2023 income statement. 3. Calculate nike cash outflow on January 15, 2024.

Ann is an employee of Nike She is paid her monthly salary of $10,000 on December 31, 2023. Personal income taxes are deducted and withheld by the employer amounting to $4,000. Canada Pension Plan (CPP) deductions of $495, union dues of $20, employment insurance premiums (El) of $130, and private health insurance premiums of $100 are also deducted. Nike is required to contribute the following amounts to the applicable agency by January 15 of the next year: CPP 100% of employee deductions El 140% of employee deductions Private health insurance 200% of employee deductions Post-retirement benefits $1,000 Required: 1. Prepare a transactions worksheet to record the events on December 31 and January 15. 2. Calculate the amount of compensation expense that would be reported on nike 2023 income statement. 3. Calculate nike cash outflow on January 15, 2024.

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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