not use ai please United Company has experienced a decline in its employee base from 500 in the final month of 2025 to 200 in the final month of 2026.The weekly payroll also decreased from $1,000,000 to $400,000 for the noted periods. Payroll is paid weekly every Friday for thecurrent week. December 31, 2025 was a Monday, and December 31, 2026 is Friday. What conclusion can be drawn with respect to thesalaries and wages liability from December 31, 2025 to December 31, 2026?O The salaries and wages liability at December 31, 2026 will be the same.The salaries and wages liability at December 31, 2026 must be greater.O The salaries and wages liability at December 31, 2026 must be less.O It depends on the expectation regarding January 2027 salaries.

The company had way more employees at the end of 2025 (500) than at the end of 2026 (200), and their…

Answered: United Company has experienced a…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter17: The Management Of Cash And Marketable Securities

Section: Chapter Questions

Problem 7P

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Reviewing payroll records indicates that one-fifth of employee salaries that are due to be paid on the first payday in January, totaling $15,000, are actually for hours worked in December. There was no previous balance in the Salaries Payable account at that time. Based on the information provided, make the December 31 adjusting journal entry to bring the balances to correct.
On January 21, the column totals of the payroll register for Great Products Company showed that its sales employees had earned 14,960, its truck driver employees had earned 10,692, and its office employees had earned 8,670. Social Security taxes were withheld at an assumed rate of 6.2 percent, and Medicare taxes were withheld at an assumed rate of 1.45 percent. Other deductions consisted of federal income tax, 3,975, and union dues, 560. Determine the amount of Social Security and Medicare taxes withheld and record the general journal entry for the payroll, crediting Salaries Payable for the net pay. All earnings were taxable. Round amounts to the nearest penny.
On January 21, the column totals of the payroll register for Great Products Company showed that its sales employees had earned 14,960, its truck driver employees had earned 10,692, and its office employees had earned 8,670. Social Security taxes were withheld at an assumed rate of 6.2 percent, and Medicare taxes were withheld at an assumed rate of 1.45 percent. Other deductions consisted of federal income tax, 3,975, and union dues, 560. Determine the amount of Social Security and Medicare taxes withheld and record the general journal entry for the payroll, crediting Salaries Payable for the net pay. All earnings were taxable. Round amounts to the nearest penny.
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…
BARS Company operates in the travel industry and incurs costs unevenly through the financial year. Advertising costs of P2 million were incurred on March 1, 2021 and it is expected to be benefit future interim periods. On the other hand, staff bonuses are estimated to be around P20 million for the year. How much is the total expense to be recognized by BARS on its income statement for the three-month period ended March 31, 2021?
Western Manufacturing is involved with several potential contingent liabilities. Your assignment is to draft the appropriate accounting treatment for each situation described below. Western’s fiscal year-end is December 31, 2021, and the financial statements will be issued in early February 2022.a. During 2021, Western experienced labor disputes at three of its plants. Management hopes an agreement will soon be reached. However, negotiations between the company and the unions have not produced an acceptable settlement, and employee strikes are currently under way. It is virtually certain that material costs will be incurred, but the amount of possible costs cannot be reasonably estimated.b. Western warrants most products it sells against defects in materials and workmanship for a period of a year. Based on its experience with previous product introductions, warranty costs are expected to approximate 2% of sales. A new product introduced in 2021 had sales of $2 million, and actual…
In 2021, Heartfin Farms reported a pretax accounting loss of $196 million. During the year, the company paid a fee of $4 million due to a fine from the Food and Drug Administration. The company accrued an expense for estimated paid future absences of $30 million relating to the company’s employee vacation program. The amounts owed will be paid equally over the next two years ($15 million in 2022 and $15 million in 2023). The enacted tax rate is 25%. There were no temporary differences at the beginning of the year and none originating in 2021 other than those described above. In the prior two years, Hinton Farms reported taxable income of $64 million in 2020 and $88 million in 2019. What is Heartfin Farms' net operating loss carryforward in 2021? A. $10 million B. $162 million C. $30 million D. $152 million
In 2021, Heartfin Farms reported a pretax accounting loss of $196 million. During the year, the company paid a fee of $4 million due to a fine from the Food and Drug Administration. The company accrued an expense for estimated paid future absences of $30 million relating to the company’s employee vacation program. The amounts owed will be paid equally over the next two years ($15 million in 2022 and $15 million in 2023). The enacted tax rate is 25%. There were no temporary differences at the beginning of the year and none originating in 2021 other than those described above. In the prior two years, Hinton Farms reported taxable income of $64 million in 2020 and $88 million in 2019. What is the amount that Heartfin Farms should record as its receivable-refund for 2021? A. $18 million B. $10 million C. $48 million D. $38 million
Western Manufacturing is involved with several potential contingent liabilities. Western's fiscal year - end is December 31, 2024, and the financial statements will be issued in early February 2025. Required: Identify the appropriate accounting treatment in each situation below. Describe the means of reporting each situation and explain your reasoning. During 2024, Western experienced labor disputes at three of its plants. Management hopes an agreement will soon be reached. However, negotiations between the company and the unions have not produced an acceptable settlement, and the employee strikes are currently under way. It is virtually certain that material costs will be incurred, but the amount of possible costs cannot be reasonably estimated. Western is involved in a suit filed in January 2025 by Crump Holdings seek $88 million as an adjustment to the purchase price in connection with the company's sale of its textile business in 2024. The suit alleges that Western misstated the…
Western Manufacturing is involved with several potential contingent liabilities. Western’s fiscal year-end is December 31, 2024, and the financial statements will be issued in early February 2025. Required: Identify the appropriate accounting treatment in each situation below. Describe the means of reporting each situation and explain your reasoning. During 2024, Western experienced labor disputes at three of its plants. Management hopes an agreement will soon be reached. However, negotiations between the company and the unions have not produced an acceptable settlement, and the employee strikes are currently under way. It is virtually certain that material costs will be incurred, but the amount of possible costs cannot be reasonably estimated. Western is involved in a suit filed in January 2025 by Crump Holdings seek $88 million as an adjustment to the purchase price in connection with the company’s sale of its textile business in 2024. The suit alleges that Western…
Dana Co.'s officers' compensation expense account had a balance of $224,000 at December 31, 20X4 before any appropriate year-end adjustment relating to the following:No salary accrual was made for December 30-31, 20X4. Salaries for the two-day period totaled $3,500.20X4 officers' bonuses of $62,500 were paid on January 31, 20X5.In its 20X4 income statement, what amount should Dana report as officers' compensation expense? $224,000 $290,000 $227,500 $286,500
Arlington Cycle Company began operations on January 1, 2020. The company reported the following selected items in its 2021 financial report: 2021 2020 Gross sales $1,400,000 $1,500,000 Accounts receivable 600,000 650,000 Actual bad debt write-offs 22,000 10,000 Arlington estimates bad debts at 2 percent of gross sales. Analyze the activity in the allowance for bad debts T-account, and comment on whether the bad debt estimate has been sufficient to cover the write-offs.

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