that $0.3 million will be taken at the end of next year. And $0.2 million will be deferred until later. c .During the year the employees of the QC earned $3 million in sick pay, of which $2.5 million is vested. During the year employees took $1 million in sick days. d.The QC received a statement from the state requiring a contribution to the retirement plan of $8 million for the current year. Because of a cash shortage the QC paid $6 million of the required contribution during the year, $1.5 million on February 15 of the following year and $0.5 million in June of the following year. Salary Expenditure should be $62 Mill $60 Mill $58 Mill $2 Mill
Queens College Employees are paid from the general fund semi-monthly on the 15th day and the last day of the month. The QC provides numerous employee benefits. Employees earn ten vacation days for each 12 months of employment. The employee can take the vacation during any summer months (May-September) prior to retirement. The employees also earn one sick day for each month of employment. Sick pay vests at the completion of five years of continuous service. Vested unused sick pay will be paid upon retirement or termination. The city contributes to a retirement plan that is administered by the state. Each year the city gets a statement from the state explaining the actuarially determined contribution required.
The QC recognizes revenues/expenditures when collected/paid or if collected/paid within 60 days of year-end. The QC’s fiscal year end is December 31. At the beginning of the current year employees had $0.4 million of earned vacation time and $7 million of vested earned sick leave.
Assuming that the city maintains its books and records in a manner to facilitate the preparation of fund financial statements, analyze the financial statement impact for the current year for the following tractions:
a. During the year employees of the QC earned $60 million in salaries. At year-end all but $2 million had been paid to the employees. QC does plan to pay the rest 61 days after the year end.
b. During the year the employees of the QC earned $2.5 million in vacation pay. The vacation pay is vested.
By year-end the employees had taken $2 million of vacation. Of the balance of vacation pay due to the employees, the QC estimates that $0.3 million will be taken at the end of next year. And $0.2 million will be deferred until later.
c .During the year the employees of the QC earned $3 million in sick pay, of which $2.5 million is vested. During the year employees took $1 million in sick days.
d.The QC received a statement from the state requiring a contribution to the retirement plan of $8 million for the current year.
Because of a cash shortage the QC paid $6 million of the required contribution during the year, $1.5 million on February 15 of the following year and $0.5 million in June of the following year.
Salary Expenditure should be
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$62 Mill |
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$60 Mill |
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$58 Mill |
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$2 Mill |
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