[The following information applies to the questions displayed below.] Aspen Ski Resorts has 100 employees, each working 40 hours per week and earning $17 an hour. Although the company does not pay any health or retirement benefits, one of the perks of working at Aspen is that employees are allowed free skiing on their days off. Federal income taxes are withheld at 15% and state income taxes at 5%. FICA taxes are 7.65% of the first $128,400 earned per employee and 1.45% thereafter. Unemployment taxes are 6.2% of the first $7,000 earned per employee. 3. How should Aspen Ski Resorts account for the free skiing given to employees on their days off? Record as salary expenses. No accounting entry required.
[The following information applies to the questions displayed below.] Aspen Ski Resorts has 100 employees, each working 40 hours per week and earning $17 an hour. Although the company does not pay any health or retirement benefits, one of the perks of working at Aspen is that employees are allowed free skiing on their days off. Federal income taxes are withheld at 15% and state income taxes at 5%. FICA taxes are 7.65% of the first $128,400 earned per employee and 1.45% thereafter. Unemployment taxes are 6.2% of the first $7,000 earned per employee. 3. How should Aspen Ski Resorts account for the free skiing given to employees on their days off? Record as salary expenses. No accounting entry required.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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[The following information applies to the questions displayed below.]
Aspen Ski Resorts has 100 employees, each working 40 hours per week and earning $17 an hour. Although the company does not pay any health or retirement benefits, one of the perks of working at Aspen is that employees are allowed free skiing on their days off. Federal income taxes are withheld at 15% and state income taxes at 5%. FICA taxes are 7.65% of the first $128,400 earned per employee and 1.45% thereafter.
3. How should Aspen Ski Resorts account for the free skiing given to employees on their days off?
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Record as salary expenses.
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No accounting entry required.
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