Bettinghaus Corporation began business on January 2, with five employees. Its sick leave and vacationpolicy follows: Each employee is allowed 6 days of paid sick leave each year and one day of paid vacationleave for each month worked. The accrued vacation leave cannot be taken until the employee has beenwith the company 1 year. The sick leave, if not used, accumulates to an 18-day maximum. The vacationleave accumulates for 5 years, but at any time the employee may request additional compensation in lieuof taking paid vacation leave. The company records its liability for both compensated absences on aquarterly basis. The daily gross wages for each employee are $120.Required:1. Prepare journal entries to record the liability for compensated absences for the first quarter (January-March). Assume no sick leave had been taken by the employees.2. Prepare a partial interim balancesheet showing how the liability created in Requirement 1 would be reported on March 31.3. Next LevelDiscuss the underlying conceptual basis of accounting for compensated absences.

These liabilities are categorized as current liabilities since it is anticipated that they will be…

Answered: Bettinghaus Corporation began business…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter12: Tax Credits And Payments

Section: Chapter Questions

Problem 25P

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ANOMALOUS IRREGULAR Co. grants its employees twelve days paid vacation leave each year. Per ANOMALOUS's policy, employees are required to take vacation leave each year, but not necessarily for their entire vacation leave entitlement. Vacation leaves not taken during a year can be carried over indefinitely. ANOMALOUS has 500 employees with an average salary of P4,000 per day. The average annual pay increase is 5%. During 20x1, total vacation leaves taken by employees were 5,400 days. Based on past experience, 90% of unused vacation leave for a year are taken in the immediately following year. If the unused vacation leaves vest, how much should ANOMALOUS accrue as liability for unused vacation leave on December 31, 20x1?
RIZAL CORP. grants its employees 10 days of paid vacation leave per year. Per company's policies, employees are required to take vacation leave each year but not necessarily to take the whole vacation leave credits each year. Vacation leaves not taken during a year can be carried over indefinitely. RIZAL CORP. has 400 employees with an average salary of P800 per day. There is an average increase in salary of 5% every year. During 2018, total leave vacation taken by employees were 3,200 days. Based on past experience, 80% of unused vacation leave for a year are taken immediately next year. If the unused vacation leaves do not vest, what amount should be reported as vacation pay expense in 2018? 3,097,600 3,232,000 3,200,000 2,560,000 O
Bettinghaus Corporation began business on January 2, 2019, with five employees. Its sick leave and vacation policy follows: Each employee is allowed 8 days of paid sick leave each year and one day of paid vacation leave for each month worked. The accrued vacation leave cannot be taken until the employee has been with the company 1 year. The sick leave, if not used, accumulates to an 18-day maximum. The vacation leave accumulates for 5 years, but at any time the employee may request additional compensation in lieu of taking paid vacation leave. The company records its liability for both compensated absences on a quarterly basis. The daily gross wages for each employee are $160. Required: 1. Prepare journal entries to record the liability for compensated absences for the first quarter of 2019. Assume no sick leave had been taken by the employees. 2. Prepare a partial interim balance sheet showing how the liability created in Requirement 1 would be reported on March 31, 2019.
Bailey Corporation began business on January 2, 2019, with five employees. Its sick leaveand vacation policy follow: Each employee is allowed 8 days of sick leave each year and one dayof paid vacation leave for each month worked. The accrued vacation cannot be taken until theemployee has been with the company 1 year. The sick leave, if not used accumulates to an 18-day maximum. The vacation leave accumulates for 5 years, but at any time the employee mayrequest compensation in lieu of taking paid vacation leave. The company records its liability forboth compensated absences on a quarterly basis. The daily gross wages for each employee are$180.Instructions:1. Prepare the journal entries to record the compensated absences for the first quarter of 2019.Three sick days were used by employees in the first quarter.2. Prepare a partial interim balance sheet showing the liability balances for compensatedabsences at March 31, 2019.
Bettinghaus Corporation began business on January 2, 2019, with five employees. Its sick leave and vacation policy follows: Each employee is allowed 7 days of paid sick leave each year and one day of paid vacation leave for each month worked. The accrued vacation leave cannot be taken until the employee has been with the company 1 year. The sick leave, if not used, accumulates to an 18-day maximum. The vacation leave accumulates for 5 years, but at any time the employee may request additional compensation in lieu of taking paid vacation leave. The company records its liability for both compensated absences on a quarterly basis. The daily gross wages for each employee are $240. Required: 1. Prepare journal entries to record the liability for compensated absences for the first quarter of 2019. Assume no sick leave had been taken by the employees. 2. Prepare a partial interim balance sheet showing how the liability created in Requirement 1 would be reported on March 31, 2019. 3.…
HIJ Company provided employees with entitlement to two weeks of paid vacation leave. During the current year, all employees earned 1,500 weeks of vacation leave and used 1,000 weeks. Current salary of employees is P3,000 per week and this is expected to increase by P300 per week or a future weekly salary of P3,300 by next year. Vacation leaves used are charged to expense using the current salary while vacation leaves unused are accrued at year-end using the future salary. How much is the vacation pay expense if the benefit is accumulating and vesting? a. 4,650,000 b. 4,500,000 c. 4,950,000 d. 3,000,000
A company grants employees 8 sick days per year. Sick days may be used as soon as they are earned and unused days may be carried over to the following year. Sick time is paid at the rate in effect when the days are taken, but are accrued at the rate in effect when they are earned. The following information pertains to the 20 employees of the company, who each work 8-hour days: Year Pay rate Sick days earned/employee Sick days taken/per employee 2020 $15.00 8 5 2021 17.00 8 7 a. Prepare the journal entry to record the sick pay earned in 2020. b. Prepare the journal entry to record sick days taken in 2020. c. Determine the liability for sick pay that the company would report on 12/31/20. d. Prepare the journal entry to record the sick pay earned in 2021. e. Prepare the journal entry to record sick days taken in 2021. f. Determine the liability for sick pay that the company would report on 12/31/21..
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
Zennia Company provides its employees with varying amounts of vacation per year, depending on their length of employment. The estimated amount of the current year’s vacation cost is $135,000. On December 31, the end of the current year, the current month’s accrued vacation pay is
Wisconsin Company began business on January 2, 2019 with 5 employees. It created a sick leave and vacation policy stated as follows: Each employee is allowed 8 days of paid sick leave each year and 1 day of paid vacation leave for each month worked. The accrued vacation leave cannot be taken until the employee has been with the company 1 year. The sick leave, if not used accumulates to a 18-day maximum. The vacation leave accumulates for 5 years, but at any time the employee may request additional compensation in lieu of taking paid vacation leave. The company considers that the requirements of PAS have been met and desires to record the liability for both compensated absences on a quarterly basis. The daily gross wages for each employee are P250. What is the amount to be recorded as Liability for Compensated absences-Vacation leave for the first quarter of 2019.
Rexallo Company begins business on January 2, 2019, with 15 employees. Its company policy is to permit each employee to take 6 days of paid sick leave each year and 1½ days of paid vacation leave for each month worked. The sick leave, if not used, accumulates to a 24-day maximum. The vacation leave accumulates for 2 years, but at any time after a 1-year period, the employee may request additional compensation in lieu of taking paid vacation leave. Rexallo prefers to record the liability for compensated absences on a quarterly basis. Assume that the gross salaries for each employee are $100 per day. The following selected events take place during the first two quarters of 2019: • On March 31, 2019, the quarterly liability for compensated absences is to be recorded. • On April 30, 2019, the following $45,000 monthly payroll, including paid vacation and sick leave, is summarized from Rexallo’s records: Payroll for Time Worked Vacation Taken Sick Leave…
Instructions Bettinghaus Corporation began business on January 2, 2019, with five employees. Its sick leave and vacation policy follows: Each employee is allowed 8 days of paid sick leave each year and one day of paid vacation leave for each month worked. The accrued vacation leave cannot be taken until the employee has been with the company 1 year. The sick leave, if not used, accumulates to an 18-day maximum. The vacation leave accumulates for 5 years, but at any time the employee may request additional compensation in lieu of taking paid vacation leave. The company records its liability for both compensated absences on a quarterly basis. The daily gross wages for each employee are $200. Required: 1. Prepare journal entries to record the liability for compensated absences for the first quarter of 2019. Assume no sick leave had been taken by the employees. 2. Prepare a partial interim balance sheet showing how the liability created in Requirement 1 would be reported on March 31, 2019.…

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