V Co. has an agreement to pay its sales manager a bonus of 7.5% of the company's earnings due to an exemplary performance. The income for the year before bonus and tax is ₱6,890,500. Income tax rate is 32% of income after bonus. The bonus is computed after deduction for both bonus and tax.   Requirements: Compute for the amount of bonus for the year.  Compute for the income after tax for the year.

Q: Hua Company has an agreement to pay its sales manager a bonus of 5% of income after bonus and after…

A: Tax means the mandatory payment made to government for the income earned. Bonus means the amount…

Q: Great has an annual payroll of $170.000. In addition, the company incurs payroll tax expense of 7%…

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Q: Raymond Moss, vice president of Moss Auto Parts, gets an annual bonus of 15% of any income, before…

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Q: Use the information for the next four (4) questions. QWERTY Company has an agreement to pay the…

A: Income after tax before bonus = Income before bonus and before tax x (1-0.30) =  P7,875,000 x 0.70 =…

Q: 1.How much is the bonus, assuming bonus is a certain percent of the income before bonus and before…

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Q: The following transactions apply to Walnut Enterprises for Year 1, its first year of operations:…

A: Statement of Cash Flow - Statement of Cash Flow is a financial statement. That includes inflow and…

Q: Required prepare a post-closing trial balance.

A: Post-closing trial balance is the trial balance that is prepared after closure and transfer of all…

Q: Compute the gross income

A: sales = 336000 assume VAT @12% VAT = 336000*12%/112% = 36000

Q: On December 31, Drexel company estimates that it will pay its employees a 6% bonus on net income…

A: We must first ascertain the net income following the deduction of the bonus in order to compute the…

Q: Joy, a purely self-employed individual, signified his intention to be taxed at the 8% tax rate. He…

A: Honor Code- Since you have posted a question with multiple sub-parts, we will provide the solution…

Q: Hayden Company expects to pay a 7% bonus on net income after deducting the bonus. Assume the company…

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Q: 3b. A company made an additional (incremental) income of $10,000 during the last week of the year.…

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A: Tax payable: It implies to the tax liability that is still left to be settled in cash. It includes…

Q: How much is the amount of bonus under the second plan? How much is the amount of bonus under the…

A: Suppose B is the amount of Bonus Under Second Plan, B = {(Profits before bonus and tax - B) x (1 -…

Q: Natural Company has an agreement to pay the sales manager a bonus of 10% of the entity's earnings.…

A: The bonus can be paid to manager on different conditions as before bonus or after bonus.

Q: A. Ferrero Company has an agreement to pay its sales manager a bonus of 10% of the income after…

A: Let assume the income after bonus and tax = X Then the manager bonus will be = X * 0.10 = 0.1X The…

Q: PP Company has an incentive compensation plan under which a branch manager receives 10% of the…

A: A bonus is a monetary reward that is more than the recipient would typically anticipate receiving.…

Q: Italy company has an incentive compensation plan under which a branch manager received 10% of the…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: A company sells 180,000 (sale price) of goods and collect sales tax of 8%. What current liability…

A: Current liability means the amount which the business has the obligation to pay within short term…

Q: during the year, plum company has a SUTA tax rate of 4.8%. The taxable payroll for the year for FUTA…

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Q: Baekhyun Company distributes annual bonuses to its sales manager and two sales supervisors. The…

A: Bonus is the additional pay that a company pays to its employees over and above their regular…

Q: In accordance with IFRS 15, how much is the balance of Unearned Revenue for Premium Claims at the…

A: Unearned premium revenue is a liability account that is used by an insurer to record that portion of…

Q: ABC Co. distributes annual bonus to its sales manager. The company reported P2 million profit for…

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Q: paid on beginning inventory 4,800 16. How much is the input tax? 17. How much is the value added tax…

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Q: Use the information for the next four (4) questions.ZXCVBNM Company has an agreement to pay the…

A: Income after tax = Income before bonus and before tax x (1-0.30) =  P7,875,000 x 0.70 = P5,512,500

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Q: JIMIN Company has an agreement to pay the executive officers a bonus of 5% of the entity’s earnings.…

A: The bonus is computed as follows

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Q: Mr. Diretso is concurrently employed at Cumaliua Corporation and Cumanan Corporation. He received…

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Q: What is the corporate income tax liability at December 31, 2020?

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Q: BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its…

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Q: BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its…

A: Journal entry is the process of documenting commercial transactions for the first time in the books…

Q: A-One Mechanics Limited files GST returns monthly, and the GST rate is 5%. The figures in the…

A: Input GST : Input GST is calculated on purchases made and expenses incurred by the company. GST is…

Q: Problem 4: JIMIN Company has an agreement to pay the executive officers a bonus of 5% of the…

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Q: Delta Cron, the president of the VARIANT COMPANY, receives 15% of the net income (after deducting…

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Payroll Entries

Payroll is a comprehensive record of employees that are paid by the company. Payroll classifies employees into various categories according to their function and pays scale (basic wage, allowance, income tax, other taxes, employee loans, etc.). Payroll processes form the bedrock of every organization as it contains sensitive information on the ‘wage and paycheck’ portion of the company’s strength—its employees. The organization needs to keep a track of the employees currently on the payroll, the net payout for the company, the record of transactions related to the employees including deductions and payroll taxes to identify the liability and its effect on the balance sheet (and other financial statements). Payroll records also include qualitative factors such as the conduct of the employee.