Paid future absences
• LO13–3
JWS Transport Company’s employees earn vacation time at the rate of 1 hour per 40-hour work period. The vacation pay vests immediately (that is, an employee is entitled to the pay even if employment terminates). During 2018, total wages paid to employees equaled $404,000, including $4,000 for vacations actually taken in 2018 but not including vacations related to 2018 that will be taken in 2019. All vacations earned before 2018 were taken before January 1, 2018. No accrual entries have been made for the vacations. No overtime premium and no bonuses were paid during the period.
Required:
Prepare the appropriate
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Chapter 13 Solutions
Intermediate Accounting
- Problem 12-24 (b) (LO. 3) Olenka Corporation hires 13 individuals on March 12, 2019, all of whom qualify for the work opportunity credit. Nine of these individuals receive wages of $16,500 during 2019, and each individual works more than 400 hours during the year. The remaining four employees worked 100 hours and earned $2,100 during the year. b. If Olenka pays total wages of $312,000 to its employees during the year, how much of this amount is deductible in 2019, assuming the work opportunity credit is taken? $_____________arrow_forwardLO.2 Oak Corporation has the following general business credit carryovers. If the general business credit generated by activities during 2019 equals 36,000 and the total credit allowed during the current year is 60,000 (based on tax liability), what amounts of the current general business credit and carryovers are utilized against the 2019 income tax liability? What is the amount of unused credit carried forward to 2020?arrow_forwardExercise 20-14 (Algo) Warranty expense [LO20-4] Woodmier Lawn Products introduced a new line of commercial sprinklers in 2020 that carry a one-year warranty against manufacturer’s defects. Because this was the first product for which the company offered a warranty, trade publications were consulted to determine the experience of others in the industry. Based on that experience, warranty costs were expected to approximate 3% of sales. Sales of the sprinklers in 2020 were $3,300,000. Accordingly, the following entries relating to the contingency for warranty costs were recorded during the first year of selling the product: Accrued liability and expense Warranty expense (3% × $3,300,000) 99,000 Warranty liability 99,000 Actual expenditures (summary entry) Warranty liability 45,540 Cash (or salaries payable, parts and supplies, etc.) 45,540 In late 2021, the company's claims experience was evaluated and it was determined that claims…arrow_forward
- Scenario 6 129 Campbell Company began operations on January 2, 2022. The company has 9 employees who work 8-hour days and are paid hourly. Each employee earns 10 paid vacation days annually, which may be used after January 15th of the following year. Additional information is as follows: Hourly Wage Rate 2022 $12 2023 $13 Days Used per Employee 2022 2023 0 4 Compute the liability for compensated absences that should be reported at December 31, 2023. 2022, the Statearrow_forwardProblem 17-2 (Algo) PBO calculations; present value concepts [LO17-3] Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.4% × service years × final year's salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2007 and is expected to retire at the end of 2041 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $92,000 at the end of 2021 and the company's actuary projects her salary to be $290,000 at retirement. The actuary's discount rate is 6%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required:2. Estimate by the projected benefits approach the amount of Davenport's annual retirement payments earned as of the end of 2021.3. What is the company's projected benefit obligation at the end of 2021 with respect to Davenport? (Do not round intermediate calculations. Round your final answer…arrow_forwardProblem 6-4A & 6-5A (Algo) [The following information applies to the questions displayed below. Greer Utsey earned $47,900 in 2022 for a company in Kentucky. Greer is single with one dependent under 17 and is paid weekly. The FUTA rate in Kentucky for 2022 is 0.6 percent on the first $7,000 of employee wages, and the SUTA rate is 5.4 percent with a wage base of $11,100. Use the percentage method in Appendix C and the state information in Appendix D. Manual payroll system is used and Box 2 is not checked. Problem 6-5A (Algo) Required: Compute the employer's share of the taxes for the third weekly payroll of the year. Note: Do not round intermediate calculation. Round your final answer to decimal places. Federal income tax withholding Social Security tax Medicare tax FUTA tax SUTA tax State income tax withholdingarrow_forward
- rr.17 Clark Industries has a defined benefit pension plan that specifies annual, year-end retirement benefits equal to: 1.3% × Service years × Final year’s salary Stanley Mills was hired by Clark at the beginning of 2005. Mills is expected to retire at the end of 2049 after 45 years of service. His retirement is expected to span 15 years. At the end of 2024, 20 years after being hired, his salary is $96,000. The company’s actuary projects Mills’s salary to be $430,000 at retirement. The actuary’s discount rate is 6%. For all requirements, round final answers to the nearest whole dollars. Do not round intermediate calculations. Use Excel, or a financial calculator. Required: Estimate the amount of Stanley Mills’s annual retirement payments for the 15 retirement years earned as of the end of 2024.arrow_forwardExercise Al-9 Payment of payroll deductions LO3 Paradise Hills Berry Farm has 21 employees who are paid biweekly. The payroll register showed the following payroll deductions for the pay period ending March 23, 2021. Gross Pay EI Premium Income Taxes 78,950.00 1,310.57 10,889.00 CPP 3,768.09 Medical Ins. United Way 1,475.00 1,644.00 Required: Prepare a journal entry to record payment by the employer to the Receiver General for Canada on April 15. (Do not round intermediate calculations. Round the final answers to 2 decimal places.) View transaction list Journal entry worksheet 1 Record the remittance to the Receiver General for Canada. Note: Enter debits before credits. Date April 15 General Journal + Debit Credit View general journal Record entry Clear entryarrow_forwardRequired information Problem 6-4A & 6-5A (Algo) [The following information applies to the questions displayed below] Joseph Farmer earned $124,800 in 2020 for a company in Kentucky. He is single with one dependent under 17 and is paid monthly. The FUTA rate in Kentucky for 2020 is 0.6 percent on the first $7,000 of employee wages, and the SUTA rate is 5.4 percent with a wage base of $10,800. Use the percentage method (or the IRS federal income tax withholding assistant) in Appendix C and the state information in Appendix D. Manual payroll system is used and Box 2 is not checked. Problem 6-4A (Algo) Required: Compute the following employee share of the taxes. (Do not round intermediate calculation. Round your final answer to 2 decimal places) Federal income tax withholding Social Security tax Medicare tax State income tax withholding Check maarrow_forward
- Example 5-10 Spencili Company is an employer located in a state with an unemployment compensation law containing merit-rating provisions for employers who meet certain requirements. Below is a summary of the total wages for the years 2019 to 2022, inclusive. For the purpose of the illustration, assume that the total wages and taxable wages are the same amount. Quarter 2019 2020 2021 2022 1st $11,000 $10,000 $8,500 $10,500 2nd 10,000 9,000 9,500 11,000 3rd 10,000 9,500 10,000 11,000 4th 10,500 9,750 9,500 9,500 Total $41,500 $38,250 $37,500 $42,000 The State Unemployment Compensation Commission maintains a separate account for each employer. The account is credited with contributions paid into the unemployment compensation fund by the employer and is charged with unemployment benefits paid from the fund. For 2023, the state law set up the following contribution rate schedule for employers: Reserve Ratio Rate Negative reserve…arrow_forwardQuestion 32 Mr. Gerry, hired as employee on July 1, 2019 received the following compensation for the year: Monthly Basic Salary P 20,000 13th Month pay 20,000 Other benefits 7,000 Salary from previous employer (Jan- May 2019) 180,000 Withholding tax from previous 4,167employer Withholding tax (July-Nov 2019) 6,000 The amount to be refunded to Mr. Gerry is: c. 0 a. 10,167 b. 4,167 d. 167arrow_forwardProblem 19-4 (IFRS) Compute the accrued liability for sick leave on December that employees are each entitled to 10 working days of no sick leave for each year. Unused sick leave may be carried forward for one calendar year only. Sick leave is taken out of any balance brought forward from the previous year and then out of the current year's entitlement on a FIFO basis. During 2020, the sick leave records of key-employees Aye, Bee and Cee are: Aye Bee Се Daily wage Unused şick leave on January 1, 2020 Sick leave earned in 2020 Sick leave taken in 2020 Wage increase effective January 1, 2020 2,500 6. 10 4,000 1,500 10 10 4 10 7 20% 25% 30% Required: 31, 2020 for the three key employees.arrow_forward
- Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT