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
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
Please show the solution.
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
Entity A has 20 employees who are each entitled to one day paid vacation leave for each month of service rendered. Unused vacation leaves cannot be carried forward and are forfeited when employees leave the entity. All the employees have rendered service throughout the current year and have taken a total of 150 days of vacation leaves. The average daily rate of the employees in the current period is ₱1,000. However, a 5% increase in the rate is expected to take into effect in the following year. Based on Entity A’s past experience, the average annual employee turnover rate is 20%. How much will Entity A accrue at the end of the current year for unused entitlements? * A. 150,000 B. 90,000 C. 0 D. 94,500
Jayne Company presently pays its employees at the end of each week. The weekly payroll totals $500,000. If Jayne Company were to extend the pay period so as to pay its employees 1 week later throughout an entire year, the employees would in effect be "lending" the firm how much for the year?
Lister Company currently gives its employees their pay at the end of each week. Lister’s weekly payroll totals $500,000. If Lister extends the pay period so as to pay its employees one week later throughout an entire year, the employees would in effect be "lending" the firm how much for the year?
Jayne Company presently pays its employees at the end of each week. The weekly payroll totals $500,000. If Jayne Company were to extend the pay period so as to pay its employees 1 week later throughout an entire year, the employees would in effect be "lending" the firm how much for the year? And if Jayne company gets a discount loan at a 12 percent interest rate. They borrow $100,000 for one year. What is the effective interest rate?
Bear Island ltd has a weekly payroll of $450,000. The employees receive entitlements to 2 weeks’ sick leave per year. The sick leave entitlements are classified as non-vesting. Past experience, and experience within the industry, suggest that 55 percent of employees will use their full 2 weeks’ entitlement each year; 10 percent of employees will take 1 weeks’ sick leave each year, and 10 percent of employees will take 1 day’s sick leave each year. Calculate the expected annual sick leave expense for bear island Ltd(on the basis of average salaries
Dainty Ltd has an average weekly payroll of $200 000. The employees are entitled to 2 weeks', non-vesting sick leave per annum. Past experience suggests that 56% of employees will take the full 2 weeks' sick leave and 22% will take 1 week's leave each year. The rest of the employees take no sick leave.Required:c) In the current week an employee with a weekly salary of $600 has been off sick for the first time this year. The employee took 2 days off out of her normal 5-day working week. Assuming that PAYG tax is deducted at 30%, what would the entry be to record the employee's weekly salary (round amounts to the nearest dollar)?
Dainty Ltd has an average weekly payroll of $200 000. The employees are entitled to 2 weeks', nonvesting sick leave per annum. Past experienc suggests that 56% of employees will take the full 2 weeks' sick leave and 22% will take 1 week's leave each year. The rest of the employees take no sickleave. Required: In the current week an employee with a weekly salary of $600 has been off sick for the first time this year. The employee took 2 days off out of her normal 5-day working week. Assuming that PAYG tax is deducted at 30%, what would the entry be to record the employee's weekly salary (roundamounts to the nearest dollar)?

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