Employees of Robert and Jesse Company are entitled to two weeks of paid vacation leave. In 2018, the employees earned 100 weeks of vacation leave and used 70 weeks. On the average, the employees are paid P 2,000 per week and the salary is expected to increase by P 200 per week next year. 1. If the benefits were accumulating and vesting, the vacation pay expense and liability shall be 2. If the benefits were NONaccumulating and NONvesting, the vacation pay expense and liability shall be

Employees of Robert and Jesse Company are entitled to two weeks of paid vacation leave. In 2018, the employees earned 100 weeks of vacation leave and used 70 weeks. On the average, the employees are paid P 2,000 per week and the salary is expected to increase by P 200 per week next year. 1. If the benefits were accumulating and vesting, the vacation pay expense and liability shall be 2. If the benefits were NONaccumulating and NONvesting, the vacation pay expense and liability shall be

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 10PA: Lemur Corp. is going to pay three employees a year-end bonus. The amount of the year-end bonus and...

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Lemur Corp. is going to pay three employees a year-end bonus. The amount of the year-end bonus and the amount of federal income tax withholding are as follows. Lemurs payroll deductions include FICA Social Security at 6.2%, FICA Medicare at 1.45%, FUTA at 0.6%, SUTA at 5.4%, federal income tax as previously shown, state income tax at 5% of gross pay, and 401(k) employee contributions at 2% of gross pay. Record the entry for the employee payroll on December 31.
Gonzalez Co. accrues the liability for vacation pay at the rate of pay in effect when the compensated time is earned. Gonzalez has 90 employees who all work 8-hour days. The employees earn 12 paid vacation days per year. They may take those vacation days any time after the year in which the days are earned. Information about the rates of pay, vacation days earned, and vacation days used for 2020, 2021, and 2022 is as follows: Year Hourly wages Vacation days earned by each employee Vacation days used by each employee 2020 $30.00 12 0 2021 $31.00 12 9 2022 $32.00 12 12 What amount should Gonzalez present on its December 31, 2022 balance sheet as its liability for vacation pay?
On January 1, 20x6, Bernie Bird Co. decided to grant its employees 10 vacation days and five sick days each year. Vacation days earned can be carried over to the next year but not sick days. Each employee took an average of three sick days in 20x6. During 20x6, each Bernie Bird’s six employees earned P100 per day and earned 10 vacation days. These vacation days were taken during 20x7. What amount should Bernie report for compensation absence expense for the year ended December 31, 20x6? a.0 b.6000 c.7,800 d.9,000
Mo Salah is employed by Liverpool Limited. The normal working week is 45 hours. Mo Salah worked for 48 hours during the last week of March 2022. He is remunerated at R90 per hour during normal working hours. Overtime is calculated at 1.5 times the normal rate. The following are her deductions for the week: Medical aid fund R400 Pension fund 8% of the normal wages Income tax R850 Liverpool Limited contributes the same amount as the employees towards the medical aid fund and pension fund. Required: Calculate the net wage of Mo Salah for the last week of March 2022.
General Motors provides long term disability insurance for this employee. The contract states that this employee will earn $3000 per month ($36,000 per year) if they become disabled. General Motors paid the entire premium cost of $1000 per year. If this employee should become disabled, what would be their yearly personal income tax liability?A. $0B. $300C. $900D. $3600E. $10,800
Mo Salah is employed by Liverpool Limited. The normal working week is 45 hours. Mo Salah worked for 48 hours during the last week of March 2022. He is remunerated at R90 per hour during normal working hours. Overtime is calculated at 1.5 times the normal rate. The following are her deductions for the week:· Medical aid fund R400· Pension fund 8% of the normal wages· Income tax R850Liverpool Limited contributes the same amount as the employees towards the medical aid fund and pension fund.Required:Calculate the net wage of Mo Salah for the last week of March 2022.
8. Z, minimum wage earner, received the following for 2018: basic salary of P 140,000, overtime pay of P 20,000, night shift differential of P 10,000 and 13h month pay of 100,000. What is the taxable net income of Z?
ABC Company determined that it has an obligation relating to employees’ rights to receive salaries for future absences, arising from services already rendered. This obligation is related to vesting rights, and payment for future absences is probable. At year-end, the obligations are reasonably estimated as follows:· Vacation Pay: 1,100,000· Sick Pay: 900,000How much should be reported as liability for compensated absences? Zero P 900,000 P 1,100,000 P 2,000,000
Under the assumption: Unused vacation leaves do not vest (accumulating and non-vesting), What amount should be reported as vacation pay expense in 2020? * ABC Corp allows each employee to earn 15 days of paid vacation leave per year. Unused vacation leave can be carried up to two years from the year there were eamed, thereafter it shall expire. The company has 50 employees (assumed have been employed throughout 2019 and 2020) with an average salary of P900 per day. Salary rates increased by 10% in 2020. According to past experience, 75% of allowed leaves to be carried-forward are ultimately exercised by the employees. Total leave vacation taken by employees during 2019 and 2020 were 400 days and 480 days, respectively. Your answer
4. On January 1, 2019, Baker Co. decided to grant its employees 10 vacation days and five sick days each year. Vacation days earned can be carried over to the next year but not sick days. Each employee took an average of three sick days in 2019. During 2019, each of Baker's six employees earned P100 per day and earned 10 vacation days. These vacation days were taken during 2020. What amount should Baker report for compensated absence expense for the year ended December 31, 2019? a. 0 b. 6,000 c. 7,800 d. 9,000 5. North Corp. has an employee benefit plan for compensated absences that gives employees 10 paid vacation days and 10 paid sick days. Both vacation and sick days can be carried over indefinitely. Employees can elect to receive payment in lieu of vacation days; however, no payment is given for sick days not taken. At December 31, 2019, North's unadjusted balance of liability for compensated absences was P21,000. North estimated that there were 150 vacation days and 75 sick days…
Jerome Company has 35 employees who work 8 hours a day and are paid hourly.On January 1, 2018, the entity began a program of granting the employees 10 days ofpaid vacation each year. Vacation days earned in 2018 may first be taken on January 1,2019.Year Hourly wage Vacation daysearned by eachemployee Vacation days usedby each employee2018 129 10 02019 135 10 82020 142.50 10 1015. What is the vacation pay expense for 2018?a. 0b. P361,200c. P378,000d. P344,40016. What is the accrued liability on December 31, 2020?a. P474,600b. P453,600c. P399,000d. P478,800 17. What is the accrued liability on December 31, 2020 assuming the policy is to accrueliability at the end of each year at the wage rate for that year?a. P474,600b. P453,600c. P399,000d. P478,800 Provide SOLUTION
On January 1, 2019, FrankKeating Company decided to grant its employees 10 vacation days and five sick days each year. Vacation days are earned can be carried over to the next year but not sick days. Each employee took an average of four sick days in 2019. During the year, each of Mike’s sixty employees earned P300 per day (increases by 5% each year) and had three unused vacation pays as of yearend. How much is the Vacation Pay Expense? How much is the Sick Pay Expense? How much is the Liability for Compensated Absences?