Intermediate Accounting
1st Edition
ISBN: 9780132162302
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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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
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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
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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
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K. Sposare
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15
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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
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assume that no employee would be on vacation.
Paycheck Calculation
Vasquez. an unmarried employee. works 43 hours in the week ended January 15.
Her pay rate is $18 per hour
Her wages are subject to no deductions other than FICA-Social Security, FICA-
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She claims two withholding allowances.
●
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Overtime pay (overtime premium is 50% of the regular rate for hours in excess of
40 per week)
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His FICA tax deduction (use 6.2% for the Social Security portion and 1.45% for
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o Total deductions, and
o Net pay. (Round tax amounts to the nearest cent.)
1. 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.
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B.
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C.
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Chapter 13 Solutions
Intermediate Accounting
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 - Prob. 13.12ECh. 13 - Prob. 13.13ECh. 13 - Prob. 13.14ECh. 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 - Prob. 1FSACCh. 13 - Surfing the Standards Case 1: Environmental...Ch. 13 - Prob. 2SSCCh. 13 - Prob. 1BCC
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