On January 1, 2021, Panda Corporation agreed to grant all its employees two weeks paid vacation each year, with the stipulation that vacations earned each year can be takenthe following year. For the year ended December 31, 2021, Panda's employees each earned an average of $500 per week. A total of 1,000 vacation weeks were earned in 2021,with 400 vacation weeks earned in 2021 but not taken during 2021. In its December 31, 2021, balance sheet, what amount of liability for compensated absences is Pandarequired to report?$500,000.$200,000.$0.$300,000.

Vacation leaves are those leaves which are being provided by employers to employees to go on…

Answered: On January 1, 2021, Panda Corporation…

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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Questions # 7-8 are based on the following: During January, Deluxe Printing pays employee salaries of $1 million. Withholdings in January are $76,500 for the employee portion of FICA, $210,000 for federal and state income tax, and $40,000 for the employee portion of health insurance (payable to Blue Cross/Blue Shield). The company incurs an additional $38,000 for federal and state unemployment tax, and $30,000 for the employer portion of health insurance. 7. What would Deluxe Printing report for salaries expense for January? A. $114,500 B. $1,000,000 C. $673,500 D. $960,000 8. The entry to record fringe benefits would include: A. Debit to salaries payable for $30,000 B. Credit to salaries expense for $30,000 C. Credit to income taxes payable for $30,000 D. Credit to accounts payable for $30,000
35
Sammy Company, a calendar-year company, has a 6% note receivable dated November 1, 2020 in the original amount of P3,000,000. Payments of P1,000,000 in principal plus interest on the outstanding balance are due annually on October 31, 2021, 2022 and 2023. How much is the interest revenue from the note for the year ended December 31, 2021?
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The payroll of Grouper Corp. for September 2023 is as follows. Total payroll was $530,000. Pensionable (CPP) and insurable (El) earnings were $370,000. Income taxes in the amount of $91,000 were withheld, as were $7,246 in union dues. The El rate was 1.58 for employees and 2.212% for employers, and the CPP rate was 5.45% for employees and 5.45% for employers. Prepare the necessary journal entries to record the payroll if the salaries and wages paid and the employer payroll taxes are recorded separately. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Prepare the entries to record the payment of all required amounts to the Receiver General for Canada and to the employees' union. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles…
The following events occurred during the year ended 30 June 2020 for Electrical Limited. On 1 June 2020, Electrical Ltd. signed a three-month 12% per annum note payable to purchase a new equipment costing $48,000. Interest and principal are paid at maturity. On 29 June 2020, Electrical Ltd. received deposit in advance of $12,000 from a construction company for completing the electrical work for a new project during the next 6 months. Electricity charges of $40,000 from 24 April to 23 June are payable on 10 July. Electrical’s main product is backed by warranty. Sales of this product for the year totalled $445,000. The opening balance of provision for warranty claims was $10,600. During the year, Electrical’s warranty expense was $31,700 and claims paid to customers totalled $25,200. June sales totalled $212,000. Electrical Ltd. collected GST of 10% on this amount. This is due to be paid to the tax office by the seventh day of the following collection. On 30 June 2020, Electrical Ltd.…
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n January 1, 2023, Yukon Company agreed to grant its employees two weeks vacation each year, with the provision that vacations earned in a particular year could be taken the following year. For the year ended December 31, 2023, all twelve of Yukon's employees earned $1,200 per week each. Eight of these vacation weeks were not taken during 2023. In Yukon's 2023 income statement, how much expense should be reported for compensated absences?
On January 8, the end of the first weekly pay period of the year, Regis Company's employees earned $21,760 of office salaries and $70,840 of sales salaries. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $13,060 of federal income taxes, $1,410 of medical insurance deductions, and $800 of union dues. No employee earned more than $7,000 in this first period. Required: 1-a. Calculate below the amounts for each of these four taxes of Regis Company. Regis's state unemployment tax rate is 5.4% of the first $7,000 paid to each employee. The federal unemployment tax rate is 0.6%. 1-b. Prepare the journal entry to record Regis Company's January 8 employee payroll expenses and liabilities. 2. Prepare the journal entry to record Regis's employer payroll taxes resulting from the January 8 payroll. Regis's state unemployment tax rate is 5.4% of the first $7,000 paid to each employee. The federal…
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