Little Company provides its employees with varying amounts of vacation per year, depending on the length of employment. The estimated amount of the current year's vacation cost is $153,600. The amount of the adjusting journal entry required on December 31, the end of the current year, for the current month's accrued vacation pay is a. $76,800. b. $12,800. ○ c. $0. O d. $153,600.

Little Company provides its employees with varying amounts of vacation per year, depending on the length of employment. The estimated amount of the current year's vacation cost is $153,600. The amount of the adjusting journal entry required on December 31, the end of the current year, for the current month's accrued vacation pay is a. $76,800. b. $12,800. ○ c. $0. O d. $153,600.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

ABC Co.’s salaried employees are paid twice a month. Information relating to salaries for the calendar year 2021 is as follows: Accrued salaries payable, Jan. 1 - P150,000 Salaries expense during the year - P2,450,000 Salaries paid during the year - P2,330,000 On December 31, 2021, what amount should ABC Co. report for accrued salaries payable? Answer and explanation pls.
Demello & Associates records adjusting entries on an annual basis. The company has the following information available on accruals that must be recorded for the year ended December 31, 2021: 1. Demello has a $15,600, 8% note receivable with a customer. The customer pays the interest on a monthly basis on the first of the month. Assume the customer pays the correct amount each month. 2. Demello pays its employees a total of $6,500 every second Wednesday. Employees work a five-day week, Monday to Friday, and are paid for all statutory holidays. December 31, 2021, is a Friday. Employees were paid on Wednesday, December 29, 2021, up to the Friday of the prior week. Demello has a contract with a customer where it provides services prior to billing the customer. On December 31, 2021, this customer owed Demello $3,400. Demello billed the customer on January 7, 2022, and collected the full amount on 3. January 18, 2022. 4. Demello received the $480 December utility bill on January 10, 2022.…
Workers' Compensation Insurance and Adjustment Specialty Manufacturing estimated that its total payroll for the coming year would be $462,500. The workers' compensation insurance premium rate is 0.2%.
Ivanhoe Company has 60 employees who work 8-hour days and are paid hourly. On January 1, 2025, the company began a program of granting its employees 10 days of paid vacation each year. Vacation days earned in 2025 may first be taken on January 1, 2026. Information relative to these employees is as follows: Hourly Year Wages Vacation Days Earned by Each Employee Vacation Days Used by Each Employee 2025 $27.50 10 0 2026 29.50 10 8 2027 32.50 10 10 Ivanhoe has chosen to accrue the liability for compensated absences at the current rates of pay in effect when the compensated time is earned. What is the amount of the accrued liability for compensated absences that should be reported at December 31, 2027?
5
indicate in the chart the number of insurable hours, the amount of insurable earnings and state which pay period they would be allocated to SCENARIO INSURABLE HOURS INSURABLE EARNINGS ALLOCATED TO WHICH PAY PERIOD? Maria is being paid out $630.00 in excess accrued vacation, the equivalent of 21.00 hours. Frank’s employment is being terminated; Oct.30 will be his last day worked. He has 80.00 hours accrued vacation worth $2,675.00 that will be paid to him on termination. Cathy took 75.00 hours vacation and was paid $1,500.00 in vacation pay.
Little Company provides its employees with varying amounts of vacation per year, depending on the length of employment. The estimated amount of the current year's vacation cost is $138,000. The amount of the adjusting journal entry required on December 31, the end of the current year, for the current month's accrued vacation pay is a. $138,000. b. $69,000. C. $11,500. d. $0.
A business provides its employees with varying amounts of vacation per year, depending on the length of employment. The estimated amount of the current year’s vacation pay is $80,400. Journalize the adjusting entry required on January 31, the end of the first month of the current year, to record the accrued vacation pay.
Crane Inc. has an annual unlimited vacation policy for its employees and the eligibility requirement is to be an employee of the company. Crane has 40 employees with average annual salaries of $50400. Crane expects its employees to take vacation evenly during the year. In the previous year, its employees took on average 4 weeks of vacation. How much vacation liability should be on the balance sheet at June 30, 2025? O $168000 O $336000 O $0 O $84000
Under vacation leave cannot be carrled over next year (non-accumulating), What Is the balance of llability for compensated absences for the year ended December 31, 2019? * ABC Corp allows each employee to earn 15 days of paid vacation leave per year. Unused vacation leave can be carried up to two years from the year there were earned, thereafter it shall expire. The company has 50 employees (assumed have been employed throughout 2019 and 2020) with an average salary of P900 per day. Salary rates increased by 10% in 2020. According to past experience, 75% of allowed leaves to be carried-forward are ultimately exercised by the employees. Total leave vacation taken by employees during 2019 and 2020 were 400 days and 480 days, respectively. Your answer
Ur
Using Liability Method.