On January 1, 2020, the entity began a program of grantingVacation days earned in 2020 may first be taken on Januaryby each employeeProblem 29-14 (IAA)PSurigao Companyand are paid hourly.terefuAVacation days usedHourly Vacation days earnedby each employeeYearwage1501520202021200151320222501515fIThe entity has chosen to accrue the liability for compensatedabsences existing at the end of each year at the current wagerate for that year.1. What is the vacation pay expense for 2020?a. 900,000b. 800,000c. 700,000d.2. What is the accrued liability onDecember 31, 2022?a. 1,700,000b. 1,660,000c. 1,360,000d. 1,020,000

Accrued liability is the liability which has been accrued but the company has not been paid yet.…

On January 1, 2020, the entity began a program of granting 2. What is the accrued liability on December 31, 2022? Surigao Company has 50 employees who work 8 hours a d Problem day and are paid hourly. Vacation days earned in 2020 may first be taken on 1, 2021. January Hourly Vacation days earned by each employee Vacation days used by each employee Year wage 15 2020 150 13 15 2021 200 15 15 2022 250 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. a. 1,700,000 b. 1,660,000 c. 1,360,000 d. 1,020,000

On January 1, 2020, the entity began a program of granting 2. What is the accrued liability on December 31, 2022? Surigao Company has 50 employees who work 8 hours a d Problem day and are paid hourly. Vacation days earned in 2020 may first be taken on 1, 2021. January Hourly Vacation days earned by each employee Vacation days used by each employee Year wage 15 2020 150 13 15 2021 200 15 15 2022 250 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. a. 1,700,000 b. 1,660,000 c. 1,360,000 d. 1,020,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

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%.
Aron and Nora Company grant all employees 2 weeks paid vacation for each full year of employment. Unused vacation time can be accumulated and carried forward to succeeding years and paid when vacations are taken or upon termination of employment. No employees resigned during the year.The following information is also available: Liability for accumulated vacations on January 1, 2020: 400,000 Pre-2020 accrued vacations used during January 1 – September 30, 2020 250,000 Vacations earned during 2019 based on current rate 300,000 The entity granted a 10% salary increase to all employees on October 1, 2020. What amount should be reported as vacation pay expense for the year ended December 31, 2020?
BTS owns an office building and leases the office spaces under a one-year rental agreement. Not all tenants make timely payments of their rent. During 2021, BTS received P800,000 from tenants. The company’s statement of financial position on December 31, 2020 reported Rent Receivable of P96,000 and Unearned Rent Revenue of P320,000. The statement of financial position on December 31, 2021 and income statement for the year ended December 31, 2021 reported Rent Receivable and Rent Revenue of P124,000 and P908,000, respectively. How much was BTS unearned rent revenue on December 31, 2021?
AAA Co. assigns some of its patents to other enterprises under a variety of licensing agreements. In some instances, advance royalties are received when the agreements are signed, and in others, royalties are remitted within sixty days after each license year-end. The following data are included in AAA Co.'s December 31 balance sheet: 2019 2020 Royalties receivable Unearned royalties 90,000 60,000 85,000 40,000 During 2020 AAA Co. received royalties' remittances of P200,000. How much should AAA Co. report as royalty income in its income statement for the year ended December 31, 2020?
Gallagher Company has gathered the information needed to complete its Form 941 for the quarter ended September 30, 2019. Using the information presented below, complete Part 1 of Form 941, reproduced on the next page. # of employees for pay period that included September 12—15 employees Wages paid third quarter—$89,352.18 Federal income tax withheld in the third quarter—$10,195.00 Taxable social security and Medicare wages—$89,352.18 Total tax deposits for the quarter—$23,865.92
Ryan Ltd commenced operations on 1 July 2019 and has one employee: Joe Hirsch. During the year ended 30 June 2021, Joe was paid $1,700 per week (an annual salary of $88,400). His only weekly deductions were $600 for PAYG tax instalments. Joe has an entitlement to four weeks’ annual leave each year and a 17.5% annual leave loading. The annual leave is accumulating and vesting. During the year ended 30 June 2021, Joe took one week of annual leave. The PAYG tax deducted for this week was $700. Joe also has an entitlement to 10 days sick leave each year. The sick leave is non-accumulating and non-vesting. During the year ended 30 June 2021, Joe took three days’ sick leave. Ryan Ltd provides Joe with 13 weeks of long-service leave (LSL) after 10 years of continuous service. The following information in relation to Joe is available for the year ended 30 June 2021: Projected salary when long-service leave vests: $200,000 Years of service to date:…
On January 1, 2019, AAA insurance co. entered into reinsurance contract with CCC Co. for a premium of P2,000. Commission expense incurred on the reinsurance contract issued is 10%. How much is the amount due from ceding company (book of reinsurer)? How much is the amount of commission income recognized by cedant?
Screen Co. assigns some of its patents to other enterprises under a variety of licensing agreements . In some instances, advance royalties are received when the agreements are signed, and in others, royalties are remitted within sixty days after each license year-end. The following data are included in Screen Co.'s December 31 balance sheet : 2019 2020 Royalties receivable Unearned royalties 100,000 70,000 95,000 50,000 During 2020 Screen Co. received royalties' remittances of P200,000 . How much should Screen Co. report as royalty income in its income statement for the year ended December 31, 2020?
On January 1, 2021, Mrs. Erich entered into a franchise agreement with KK to market their products. The agreement provides for an initial fee of P15,500,000 payable as follows: P6,500,000 to be paid upon signing of the contract and the balance in five equal annual payments every end of the year starting December 31, 2021. Mrs. Erich signs a non-interest bearing notes for the balance. His credit rating indicates that he can borrow money at 15% interest for a loan of this type. The present value of an annuity of P1 at 15% for 5 periods is 3.352. The agreement further provides that the franchisee must pay a continuing franchise fee equal to 3% of the monthly gross sales. On August 31, the franchiser completed the initial services required in the contract at a cost of P7,290,120 and incurred indirect cost of P475,000. The franchisee commenced business operations on November 30, 2021. The gross sales reported to the franchisor were P1,800,000 for December, 2021. The first installment…
On January 1, 2018, DMCI Company started the construction of a building at a fixed contract price ofP1,000,000. On the same date, the customer paid a mobilization fee equal to 5% of contract price that will be deductible from the first billing. The outcome of construction contract cannot be estimated reliably During 2018, the entity billed the customer equivalent to 30% of the contract price. During 2019, the entity billed again the customer amounting to 20% of the contract price. During 2020, the entity billed again the customer amounting to 40% of the contract price. The remaining billing was made at the year of completion of the project. The entity made collection from the customer at the end of 2018, 2019 and 2020, in the amount of P120,000, P450,000 and P180,000, respectively. The entity provided the following data concerning the direct costs related to the said project: 2018 2019 2020 Cumulative costs incurred at year-end 360,000 800,000 870,000 Remaining estimated costs to…
Under the assumptlon: Unused vacation leaves do not vest (accumulating and non-vesting), What is the balance of llablity for compensated absences for the year ended December 31, 2019? * 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 earned, 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
Lynford Company sold 10,500 dishwashers for $1,100 each during 2021. The dishwashers are under warranty for one year following the sale. Maintenance on the dishwashers during the warranty period averages $90 each. Actual warranty costs incurred during 2021 for units sold that year were $296,000. The statement of financial position at year end will report a related liability of: Select one: a. $296,000. O b. $649,000. O c. $1,030,900. O d. $945,000.