ABC Company determined that it has an obligation relating to employees’ rights to receive salaries for future absences, arising from services already rendered. This obligation is related to vesting rights, and payment for future absences is probable. At year-end, the obligations are reasonably estimated as follows: · Vacation Pay: 1,100,000 · Sick Pay: 900,000

ABC Company determined that it has an obligation relating to employees’ rights to receive salaries for future absences, arising from services already rendered. This obligation is related to vesting rights, and payment for future absences is probable. At year-end, the obligations are reasonably estimated as follows: · Vacation Pay: 1,100,000 · Sick Pay: 900,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 3C

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ABC Company determined that it has an obligation relating to employees' rights to receive salaries for future absences, arising from services already rendered. This obligation is related to vesting rights, and payment for future absences is probable. At year-end, the obligations are reasonably estimated as follows: Vacation Pay: 1,100,000 Sick Pay: 900,000 How much should be reported as liability for compensated absences? *
When determining the liability for compensated absences, the amount should be based on1. an average of the last three year's rates of pay when employees earn the right to the compensated absences.2. the current or future rates (if known) of pay expected to be paid when employees use compensated time.3. the PV (present value) of the amount expected to be paid in future periods.
Northwest Company determined that it has an obligation relating to employees' rights to receive compensation for future absences attributable to employees’ services already rendered. The obligation relates to rights that vest, and payment of the compensation is probable. The amounts of Northwest's obligations as of December 31 are reasonably estimated as follows: Vacation pay P110,000 Sick pay 80,000 In its December 31 financial position, what amount should Northwest report as its liability for compensated absences?
According to PAS 19, short-term employee benefits are recognized a. at each year-end b. at each month-end c. on a semi-monthly basis d. when an employee has rendered service in exchange for those benefits.
GHI Company compensates its employees for certain absences for vacation and sickness. Employees are entitled to one day vacation plus one day sick leave for each month worked during the year. Unused vacation days may be carried forward, but unused sick leave does not accumulate. Employees are compensated according to their pay in effect at the time of the leave. The following data were taken from the records for the year 2021. Employee Date of initial employment Unused vacation 1/1/2021 Vacation taken in 2021 Sick leave taken in 2021 Rate per day Rj 1/10/2019 18 8 5 1,000 Pinky 7/28/2020 5 4 10 800 Janus 9/1/2021 0 2 6 600 Noli 8/1/2021 0 3 5 400 Compute the balance of liability for compensated absences at December 31, 2021.
GHI Company compensates its employees for certain absences for vacation and sickness. Employees are entitled to one day vacation plus one day sick leave for each month worked during the year. Unused vacation days may be carried forward, but unused sick leave does not accumulate. Employees are compensated according to their pay in effect at the time of the leave. The following data were taken from the records for the year 2021. Employee Date of initial employment Unused vacation 1/1/2021 Vacation taken in 2021 Sick leave taken in 2021 Rate per day Rj 1/10/2019 18 8 5 1,000 Pinky 7/28/2020 5 4 10 800 Janus 9/1/2021 0 2 6 600 Noli 8/1/2021 0 3 5 400 Prepare the entry to record the 2021 transactions.
GHI Company compensates its employees for certain absences for vacation and sickness. Employees are entitled to one day vacation plus one day sick leave for each month worked during the year. Unused vacation days may be carried forward, but unused sick leave does not accumulate. Employees are compensated according to their pay in effect at the time of the leave. The following data were taken from the records for the year 2021. Employee Date of initial employment Unused vacation 1/1/2021 Vacation taken in 2021 Sick leave taken in 2021 Rate per day Rj 1/10/2019 18 8 5 1,000 Pinky 7/28/2020 5 4 10 800 Janus 9/1/2021 0 2 6 600 Noli 8/1/2021 0 3 5 400 Compute the amount of Employee benefit expense for sick leave and vacation leave forthe year 2021.
GHI Company compensates its employees for certain absences for vacation and sickness. Employees are entitled to one day vacation plus one day sick leave for each month worked during the year. Unused vacation days may be carried forward, but unused sick leave does not accumulate. Employees are compensated according to their pay in effect at the time of the leave. The following data were taken from the records for the year 2021. Employee Date of initial employment Unused vacation 1/1/2021 Vacation taken in 2021 Sick leave taken in 2021 Rate per day Rj 1/10/2019 18 8 5 1,000 Pinky 7/28/2020 5 4 10 800 Janus 9/1/2021 0 2 6 600 Noli 8/1/2021 0 3 5 400 Required:1. Compute the balance of the account Liability for CompensatedAbsencesat December 31, 2020.2. Compute the amount of Employee benefit expense for sick leave and vacation leave forthe year 2021.3. Compute the balance of liability for compensatedabsences at December 31, 2021.4. Prepare the entry to recordthe 2021…
On January 1, 2020, the entity began a program of granting Vacation days earned in 2020 may first be taken on January by each employee Problem 29-14 (IAA) P Surigao Company and are paid hourly. te re fu A Vacation days used Hourly Vacation days earned by each employee Year wage 150 15 2020 2021 200 15 13 2022 250 15 15 f I The entity has chosen to accrue the liability for compensated absences existing at the end of each year at the current wage rate for that year. 1. What is the vacation pay expense for 2020? a. 900,000 b. 800,000 c. 700,000 d. 2. What is the accrued liability on December 31, 2022? a. 1,700,000 b. 1,660,000 c. 1,360,000 d. 1,020,000
A lump sum benefit is payable on termination of service and equal to 1 per cent of final salary for each year of service. The salary in year 1 is P10,000 and is assumed to increase at 7 per cent (compound) each year. The discount rate used is 10 per cent per year. The entity does not fund its obligation to pay lump-sum benefits. The employee is expected to leave at the end of year 5. The change in year 2 in the net defined benefit liability that arises from the passage of time (interest cost) is
Which of the following statements describe short-term employee benefits? They are measured at a discounted basis. They are payable no earlier that twelve months after yearend. Actuarial assumptions are reflected. Actuarial gains or losses are not recorded.
Colyong, a government employee, receives a full 13rth month pay of 20,000 exclusive of 14,000 other benefits. He was deducted 18,000 during the year for premium for his SSS, PHIC, and HDMF contributions. Compute Colyong's taxable compensation income * 222,000 226,000 240,000 254,000