Prepare the journal entries to record the transactions related to sick days during 2022 and2023 Pina Colada Limited began operations on January 2, 2022. Pina Colada employs 9 individuals who work eight-hour days and are paidhourly. Each employee earns 10 paid vacation days and 6 paid sick days annually. Vacation days may be taken after January 15 of theyear following the year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate.Additional information is as follows:Actual HourlyWage Rate2022$20.00 $22.002023Date2022Year in Which Vacation TimeWas Earned2023Vacation Days Usedby Each Employee202220222023020238Assume that Pina Colada Limited has chosen not to recognize paid sick leave until it is used, and has chosen to accrue vacation time atexpected future rates of pay without discounting. Pina Colada uses the following projected rates to accrue vacation time:Sick Days Usedby Each Employee20223utomatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry isquired, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.)Salaries and Wages ExpenseSalaries and Wages Expense2023Projected Future Pay Rates Usedto Accrue Vacation Pay$20.75 per hour$22.60 per hourAccount Titles and Explanation4Debit00Credit

As the sick leaves expenses are recognized when they taken , the salaries expenses is debited and…

Answered: formation is as follows: Hourly Rate…

Business

Accounting

formation is as follows: Hourly Rate Vacation Days Used by Each Employee Sick Days Used by Each Employee

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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Low Country Goods has four employees and pays them on an hourly basis. During the week beginning June 24 and ending June 30, these employees worked the hours shown below. Information about hourly rates, marital status, federal income tax withheld, and cumulative earnings prior to the current pay period also appears below. Consider any hours worked beyond 40 in the week as overtime hours and overtime pay at one and one-half times their regular hourly rate Employee Regular Hours Worked Marital Federal Income Taxi Hourly Rate Status Withheld Cumulative Earnings Amora Brandon: 48 $ 12.60 M 52.00 $ 17,630 Carlos Cortez 49 11.40 21.00 16,965 Jane Jennings Sarah Wise Required: 40 51 11.10 10.60 23.00 57.00 16,070 14,650 1. Enter the basic payroll information for each employee in a payroll register Record the employee's name, marital status, total and overtime hours, and regular hourly rate Note: Consider any hours worked beyond 40 in the week as overtime hours and overtime pay at one and…
calculating gross earnings THe lw pay its employees on a hourly wage. Fing gross earings for each employee. Hours worked hours wage gross earnings pat 38 5.96 steve 23 5.50 mary 32 6.19
Waterway Company began operations on January 2, 2025. It employs 10 individuals who work 8-hour days and are paid hourly. Each employee earns 12 paid vacation days and 7 paid sick days annually. Vacation days may be taken after January 15 of the year following the year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additional information is as follows. Actual Hourly Vacation Days Used Wage Rate by Each Employee Sick Days Used by Each Employee 2025 2026 2025 2026 2025 2026 $12 $13 0 10 5 6 Waterway Company has chosen not to accrue paid sick leave until used, and has chosen to accrue vacation time at expected future rates of pay without discounting. The company used the following projected rates to accrue vacation time. Year in Which Vacation Time Was Earned 2025 2026 Projected Future Pay Rates Used to Accrue Vacation Pay $12.45 13.45 (a) Prepare journal entries to record transactions related to compensated absences during 2025…
Complete the following table (assume the overtime for each employee is a time-and-a-half rate after 40 hours): (Do not round intermediate calculations. Round your "overtime rate" and "gross earnings" to the nearest cent.) Total regular hours Total overtime hours Employee Regular Gross M T W Th Sa rate Overtime rate earnings Ryan 12 8 10 8 6 3 40 $7.80 11.70 24 1.50
As you learned in the previous chapter, Kipley Company is a small manufacturing firm located in Pittsburgh, Pennsylvania. The company has a workforce of both hourly and salaried employees. In the last chapter, gross wages were computed for each employee. Adjacent to their name, each employee's gross wages are shown in the Payroll Register. The next task is computing the FICA withholding for each employee and the employer's liability. Requirements: Compute the OASDI for each employee. Compute the HI for each employee. On the Employer Register, compute the employer FICA liability.
FICA defines all of the following as wages except: Group of answer choices Total cash tips of $15 received by a tipped employee in the month of May Standby payments First six months of sick pay Year-end bonuses Employee's social security taxes paid for by the employer
VACATION PAY The Tom Thumb Corporation follows this vacation policy for its factory workers: I to 3 years of service: 1 week paid vacation 4 to 12 years of service: 3 weeks paid vacation Over 12 years of service: 4 wecks paid vacation The payroll records show the following information pertaining to next year (all em- ployees work directly on the product): YEARS OF EMPLOYMENT SALARY (WEEKLY) NAME I. Gelati B. O'Hara R. Reilly F. Maestro R. Auerbach K. Sposare T. Fyumo $350 175 370 15 425 8. 400 125 390 Requlred: Determine the amount that should be accrued each week for each employee. b Show next year's journal entry needed to distribute the weekly payroll. The Tom Thumb Corporation uses the perpetual cost accumulation system. To prepare the entry, assume that no employee would be on vacation.
4. Sam Tully works two separate jobs for Mountain Company. During the week, Job A consisted of 38 hours at $20 per hour; Job B involved 15 hours at $14 per hour.What is Sam’s total earnings for this workweek if Mountain Company uses the average rate basis for calculating overtime?
The standard direct labor rates in effect for the current fiscal year and the standard hours allowed for the actual output of work for July are shown in the following schedule. Worker classification Standard Direct Labor Rate per Hour $60 Standard Direct Labor-Hours Allowed for Output 1,380 1,840 2,300 II 55 III 45 The wage rates for each labor class increased under the terms of a new contract. The standard wage rates were not revised to reflect the new contract. The actual direct labor-hours worked and the actual direct labor rates per hour experienced for the month of July were as follows. Actual Direct Labor Rate Worker Classification Actual Direct per Hour $64 Labor-Hours 1,470 II 58 1,950 2,380 III 46 Required: Calculate the dollar amount of the total direct labor variance for July for Matthews & Bros. and break down the total variance into the following components: a. Direct labor price and efficiency variances. b. Direct labor mix and yield variances.
The question is based on the monthly payroll record of Division S and Agency A (see below). Refer to the following facts when answering questions. All Agency A employees are paid biweekly on the 5th (for wages earned during the payperiod of the previous month's 16 through month end) and the 20th (for wages earned during the payperiod of the 1st through 15). Overtime is paid at the rate of 1 ½ times regular salary. Monthly deductions remain the same percentage of gross earnings. For instance, an employee whose regular salary is $1000 has 10% or $100 withheld for federal taxes. If the same employee earns $200 in overtime, his federal tax deduction would be $120, or 10% of $1200. In converting monthly salaries to hourly rates, compute on the basis of 173.33 working hours in a month. Division S’s clerk has no state taxes deducted. What is his yearly take home pay? Select the single best answer: A. $13596.00 B. $14244.00C. $15156.00D. $15620.00
Sheffield Company began operations on January 2, 2019. It employs 11 individuals who work 8-hour days and are paid hourly. Each employee earns 13 paid vacation days and 8 paid sick days annually. Vacation days may be taken after January 15 of the year following the year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additional information is as follows. Actual HourlyWage Rate Vacation Days Usedby Each Employee Sick Days Usedby Each Employee 2019 2020 2019 2020 2019 2020 $13 $14 0 11 5 6 Sheffield Company has chosen not to accrue paid sick leave until used, and has chosen to accrue vacation time at expected future rates of pay without discounting. The company used the following projected rates to accrue vacation time. Year in Which VacationTime Was Earned Projected Future Pay RatesUsed to Accrue Vacation Pay 2019 $13.65 2020 14.73…
Determine the gross pay for each employee listed below. When necessary, round intermediate calculations and the final answer to the nearest cent. Nicole Smith's yearly salary is $87,360.00. During the week, Smith worked 42 hours, and she is entitled to time-and-a-half for all hours over 40.