Northwest Company determined that it has an obligation relating to employees' rights to receive compensation for future absences attributable to employees’ services already rendered. The obligation relates to rights that vest, and payment of the compensation is probable. The amounts of Northwest's obligations as of December 31 are reasonably estimated as follows: Vacation pay P110,000 Sick pay 80,000 In its December 31 financial position, what amount should Northwest report as its liability for compensated absences?

Northwest Company determined that it has an obligation relating to employees' rights to receive compensation for future absences attributable to employees’ services already rendered. The obligation relates to rights that vest, and payment of the compensation is probable. The amounts of Northwest's obligations as of December 31 are reasonably estimated as follows: Vacation pay P110,000 Sick pay 80,000 In its December 31 financial position, what amount should Northwest report as its liability for compensated absences?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 7P

See similar textbooks

Similar questions

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: 900,000 How much should be reported as liability for compensated absences? *
How much should be disclosed in the notes to the financial statements as "compensation expense" in accordance with IAS 24, Related Party Disclosures?
For the year ended December 31, Lopez Company implements an employee bonus program based on company net income, which the employees share equally. Lopez’s bonus expense is computed as $14,563. 1. Prepare the journal entry at December 31 to record the bonus due the employees. 2. Prepare the later journal entry at January 19 to record payment of the bonus to employees.
GHI Company compensates its employees for certain absences for vacation and sickness. Employees are entitled to one day vacation plus one day sick leave for each month worked during the year. Unused vacation days may be carried forward, but unused sick leave does not accumulate. Employees are compensated according to their pay in effect at the time of the leave. The following data were taken from the records for the year 2021. Employee Date of initial employment Unused vacation 1/1/2021 Vacation taken in 2021 Sick leave taken in 2021 Rate per day Rj 1/10/2019 18 8 5 1,000 Pinky 7/28/2020 5 4 10 800 Janus 9/1/2021 0 2 6 600 Noli 8/1/2021 0 3 5 400 Prepare the entry to record the 2021 transactions.
On January 1, 2020, the entity began a program of granting Vacation days earned in 2020 may first be taken on January by each employee Problem 29-14 (IAA) P Surigao Company and are paid hourly. te re fu A Vacation days used Hourly Vacation days earned by each employee Year wage 150 15 2020 2021 200 15 13 2022 250 15 15 f I The entity has chosen to accrue the liability for compensated absences existing at the end of each year at the current wage rate for that year. 1. What is the vacation pay expense for 2020? a. 900,000 b. 800,000 c. 700,000 d. 2. What is the accrued liability on December 31, 2022? a. 1,700,000 b. 1,660,000 c. 1,360,000 d. 1,020,000
Lawrence Corp. has an employee benefit plan for compensated absences that gives each employee 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, 2021, B's unadjusted balance of liability for compensated absences was $42,000. B estimated that there were 300 total vacation days and 150 sick days available at December 31, 2021. B's employees earn an average of $200 per day. In its December 31, 2021, balance sheet, what amount of liability for compensated absences is B required to report? A. $84,000. B. $60,000. C. $90,000. D. $144,000.
If the employee benefits remain unpaid, how much liability shall Entity A accrue at the end of the year? A. 400,000 B. 200,000 C. 0 D. 300,000
How much is the employee benefit cost for sick leave and vacation leave for the year 2020? How much is the liability for compensated absences at December 31,2020?
Jon Corp. has an employee benefit plan for compensated absences that gives each employee 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, 2021, Jon 's unadjusted balance of liability for compensated absences was $42,000. B estimated that there were 300 total vacation days and 150 sick days available at December 31, 2021. Jon's employees earn an average of $200 per day. In its December 31, 2021, balance sheet, what amount of liability for compensated absences is B required to report? A. $60,000. B. $84,000. C. $90,000. D. $144,000. D. 9.7%.
An employee receives a bi-weekly gross salary of $2,000. The employee’s deductions include income tax of $218, CPP of $99, EI of $36, and union dues of $50. The employer’s share of the deductions includes CPP of $139 and EI of $36. What is the total amount of salaries and employee benefits expense that X Corp. would record on its income statement as a result of the employee's bi-weekly salary? answers a. $1,597 b. $1,772 c. $2,000 d. $2,175
According to PAS 19, short-term employee benefits are recognized a. at each year-end b. at each month-end c. on a semi-monthly basis d. when an employee has rendered service in exchange for those benefits.
For the current year ended December 31, a company has implemented an employee bonus program based on its net income, which employees share equally. Its bonus expense is $40,000. (a) Prepare the journal entry at December 31 of the current year to record the bonus due. (b) Prepare the journal entry at January 20 of the following year to record payment of that bonus to employees.