Intermediate Accounting (2nd Edition)
2nd Edition
ISBN: 9780134730370
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 13, Problem 13.4MC
Medical Services Inc allows employees at the end of the year to carry forward up to 40 hours of paid time off at their current salary James is a full-time employee who has unused vacation time of 80 hours, and Marcia, also a full-time employee, has unused vacation time of 48 hours Mow much should Medical Services Inc record as a liability for the unpaid vacation time at the end of the year?
| Employee | Hourly Rate |
| James | $14,00 |
| Marcia | 16,00 |
- a. $1,200
- b. $1,328
- c. $1,760
- d. $1,888
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
VACATION PAY
The Tom Thumb Corporation follows this vacation policy for its factory workers:
I to 3 years of service: 1 week paid vacation
4 to 12 years of service: 3 weeks paid vacation
Over 12 years of service: 4 wecks paid vacation
The payroll records show the following information pertaining to next year (all em-
ployees work directly on the product):
YEARS OF
EMPLOYMENT
SALARY
(WEEKLY)
NAME
I. Gelati
B. O'Hara
R. Reilly
F. Maestro
R. Auerbach
K. Sposare
T. Fyumo
$350
175
370
15
425
8.
400
125
390
Requlred:
Determine the amount that should be accrued each week for each employee.
b Show next year's journal entry needed to distribute the weekly payroll. The Tom
Thumb Corporation uses the perpetual cost accumulation system. To prepare the entry,
assume that no employee would be on vacation.
Your company hired a new pipe-fitter for the upcoming year. The company owner would like for
you to determine the hourly wage for this employee for upcoming jobs.
What is the wage fully burdened wage hourly wage rate for the employee based upon the information below?
• Base Wage Rate = $32.52/hour
• 4 weeks of vacation, sick, and personal leave
• Social Security = 6.2% on the first $132,900
• Medicare = 1.45%
•FUTA = 0.6% on the first $7,000
SUTA 3.4% on the first $22,000
• Workers' Compensation = $9.77 per $100
• General Liability = 0.78%
•
Employer Paid Health Insurance = $600 per month
• Retirement = 50% match on 7% of wages
Please Solve In 15mins I will Thumbs-up promise
Chapter 13 Solutions
Intermediate Accounting (2nd Edition)
Ch. 13 - Prob. 13.1QCh. 13 - Prob. 13.2QCh. 13 - Prob. 13.3QCh. 13 - Do sellers recognize sales taxes as expenses on...Ch. 13 - Prob. 13.5QCh. 13 - Prob. 13.6QCh. 13 - Prob. 13.7QCh. 13 - What is a gam contingency? Is It accrued and...Ch. 13 - Do firms always accrue and record loss...Ch. 13 - Prob. 13.10Q
Ch. 13 - Prob. 13.11QCh. 13 - Prob. 13.12QCh. 13 - Prob. 13.13QCh. 13 - Prob. 13.14QCh. 13 - Prob. 13.15QCh. 13 - Prob. 13.16QCh. 13 - Prob. 13.1MCCh. 13 - Prob. 13.2MCCh. 13 - Prob. 13.3MCCh. 13 - Medical Services Inc allows employees at the end...Ch. 13 - Trade Notes Payables. On February 1, Seville...Ch. 13 - Unearned Revenues. On June 1 of the current year,...Ch. 13 - Unearned Revenues. GoSnow Inc. provides snow...Ch. 13 - Prob. 13.4BECh. 13 - Prob. 13.5BECh. 13 - Prob. 13.6BECh. 13 - Sales Taxes Payable. Kloth Fabric Store operates...Ch. 13 - Prob. 13.8BECh. 13 - Prob. 13.9BECh. 13 - Prob. 13.10BECh. 13 - Asset Retirement Obligation at Acquisition. On...Ch. 13 - Prob. 13.12BECh. 13 - Asset Retirement Obligation, Disposal. Buckner...Ch. 13 - Prob. 13.14BECh. 13 - Prob. 13.15BECh. 13 - Prob. 13.16BECh. 13 - Prob. 13.17BECh. 13 - Warranty Liability, Assurance-Type Warranty,...Ch. 13 - Prob. 13.19BECh. 13 - Prob. 13.20BECh. 13 - Trade Notes Payable. On November 1, Barcelona...Ch. 13 - Unearned Revenues. On May 1 of the current year,...Ch. 13 - Gift Cards. Diamond Depot sold 57,000 of gift...Ch. 13 - Sales Taxes Payable. Eaton Technology operates...Ch. 13 - Prob. 13.5ECh. 13 - Asset Retirement Obligation. On January 1,...Ch. 13 - Prob. 13.7ECh. 13 - Prob. 13.8ECh. 13 - Prob. 13.9ECh. 13 - Prob. 13.10ECh. 13 - Prob. 13.11ECh. 13 - Accounting for Premiums. Supergreen Grocers, Inc....Ch. 13 - Prob. 13.13ECh. 13 - Payroll Taxes Payable, Pay Exceeds. Wage Base....Ch. 13 - Current Operating Liabilities. James Stores, Inc....Ch. 13 - Prob. 13.2PCh. 13 - Prob. 13.3PCh. 13 - Prob. 13.4PCh. 13 - Prob. 13.5PCh. 13 - Prob. 13.6PCh. 13 - Prob. 13.7PCh. 13 - Payroll Taxes Payable. Jackson Corporation employs...Ch. 13 - Prob. 1JCCh. 13 - Prob. 2JCCh. 13 - Prob. 3JCCh. 13 - Financial Statement Analysis Case You are...Ch. 13 - Surfing the Standards Case 1: Environmental...Ch. 13 - Prob. 2SSCCh. 13 - Prob. 1BCC
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- _____1. Employees FICA tax rates A. Severance pay _____2. Form SS-4 B. By the 15th day of the following month _____3. Semiweekly depositor C. Employers Quarterly Federal Tax Return _____4. Taxable for FICA D. Application for Employer Identification Number _____5. Nontaxable for FICA E. 6.2 percent and 1.45 percent _____6. Self-employeds FICA tax rates F. Employees application for social security card _____7. Form 941 G. Cumulative wages of 128,400 _____8. Monthly depositor H. More than 50,000 in employment taxes in the lookback period _____9. OASDI taxable wage base I. 12.4 percent and 2.9 percent _____10. Form SS-5 J. Employers matching contributions into employees deferred compensation arrangementsarrow_forwardAn employee earns $8,000 in the first pay period. The FICA Social Security Tax rate is 6.2%, and the FICA Medicare tax rate is 1.45%. What is the employees FICA taxes responsibility? A. $535.50 B. $612 C. None, only the employer pays FICA taxes D. $597.50 E. $550arrow_forward1. The contribution limit for a Payroll Deduction IRA increases once an employee reaches _____ years of age. Answer: A. 40 B. 45 C. 50 D. 55 2. Carrie Rosenberg worked 44 hours the first week of the calendar year and earns regular wages of $18/hour. She is paid an overtime rate 1.5 times her regular wage rate, contributes 2% of her gross pay to a 401(k) plan, and contributes $40/week to a flexible spending account. Her Social Security tax for the week is $______ . 3. What types of wage garnishments are typically satisfied before others? Answer: A. Student loan payments and state/federal tax levies B. Alimony and child support payments C. Child support payments and federal tax levies D. State and federal tax leviesarrow_forward
- Take me to the text Sampson Hotel has three employees who are paid on an hourly basis, plus time and one half for hours in excess of 44 hours per week. Payroll information for the week ending August 14, 2020 is listed below. Employee Hours Worked Hourly Rate Income Tax CPP ΕΙ B. Penguin $52.65 $24.11 $8.32 J. Michelle $64.44 $30.30 $10.18 T. Cruise $66.80 $31.54 $10.55 Do not enter dollar signs or commas in the input boxes. Round your answers to 2 decimal places. J. Michelle $ a) Calculate gross pay for each employee and the amount the employer will have to pay for CPP and El. Employee Gross Employer CPP Employer El B. Penguin $ T. Cruise Total $ Aug 14 39 36 40 $ Record payroll $13.50 $17.90 $16.70 $ $ Aug 31 $ $ b) Prepare the journal entries for the August 14 payroll and the employer's portion of payroll. Employees will not be paid until next week. For transactions with more than one debit or more than one credit, enter the debit accounts in alphabetical order followed by credit…arrow_forwardPlease do not give solution in image formatarrow_forwardHours Employee M T W T F S Hourly Rate Federal Income Tax Withholding Health Insurance L. Helton 9 7 8 8 10 2 $12 $33 $12 R. Kenseth 7 8 8 8 8 5 14 36 27 D. Tavaras 9 10 8 9 9 0 15 60 26 Employees are paid 1.50 times the regular hourly rate for all hours worked in excess of 40 hours per week. FICA taxes are 7.65% on the first $132,900 of gross earnings. Bonita Company is subject to 5.40% state unemployment taxes and 0.60% federal unemployment taxes on the first $7,000 of gross earnings. (a) Prepare the payroll register for the weekly payroll. (Round answers to 2 decimal places, e.g. 15.25.) Employee Total Hours L. Helton R. Kenseth D. Tavaras Totals Earnings Regular Overtime Gross Pa $arrow_forward
- 5arrow_forwardNeed help with this questionarrow_forwardJerome Company has 35 employees who work 8 hours a day and are paid hourly.On January 1, 2018, the entity began a program of granting the employees 10 days ofpaid vacation each year. Vacation days earned in 2018 may first be taken on January 1,2019.Year Hourly wage Vacation daysearned by eachemployee Vacation days usedby each employee2018 129 10 02019 135 10 82020 142.50 10 1015. What is the vacation pay expense for 2018?a. 0b. P361,200c. P378,000d. P344,40016. What is the accrued liability on December 31, 2020?a. P474,600b. P453,600c. P399,000d. P478,800 17. What is the accrued liability on December 31, 2020 assuming the policy is to accrueliability at the end of each year at the wage rate for that year?a. P474,600b. P453,600c. P399,000d. P478,800 Provide SOLUTIONarrow_forward
- 1.The following information is applicable to a weekly paid employee for JQ Ltd Normal working week (5 days) 40hoursNumber of hours worked 45 hours normal remuneration rate R5 Overtime rate R7 Pension Fund (based on remuneration) Employer’s contribution 5%Employee contribution 2%Medial Aid Fund R50 PAYE (based on taxable income) R10%UIF R10 1.1)Calculate employee net salary for the weekarrow_forwardLIly is employees in Ontario with 12 years of service gets paid $25/hour and works the following hours:M8, T 11, W 10, Th 8, F 7Calculate the Lily vacation pay earned for the week under the Employment Standards for Ontarioarrow_forwardWhat is toms net pay per month and what does he pay in FICA taxes?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeCentury 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub
How JOURNAL ENTRIES Work (in Accounting); Author: Accounting Stuff;https://www.youtube.com/watch?v=Y-_Q3rANyxU;License: Standard Youtube License