What is the total liability for bonus, vacation and pension?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
. Ms Jane, a production worker earns P14,904 a month, and the company pays one month’s
salary as bonus at the end of the year. Ms Jane is also entitled to a half month paid vacation. The
company also pays P2,070 a year into a pension fund of the worker. All labor-related
benefits
and pension costs are charged to production during the 11 ½ months the employee is at work.
What is the total liability for bonus, vacation and pension?
a. P2,484
b. P2,124
c. P2,540
d. P1,206
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