Pina Colada Limited began operations on January 2, 2022. Pina Colada employs 9 individuals who work eight-hour days and are paid hourly. Each employee earns 10 paid vacation days and 6 paid sick days annually. Vacation days may be taken after January 15 of the year following the year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additional information is as follows: Actual Hourly Wage Rate Vacation Days Used by Each Employee Sick Days Used by Each Employee 2022 2023 2022 2023 2022 2023 $20.00 $22.00 0 8 3 4 Assume that Pina Colada Limited has chosen not to recognize paid sick leave until it is used, and has chosen to accrue vacation time a expected future rates of pay without discounting. Pina Colada uses the following projected rates to accrue vacation time: Year in Which Vacation Time Was Earned 2022 2023 Projected Future Pay Rates Used to Accrue Vacation Pay $20.75 per hour $22.60 per hour Calculate the amounts of any liability for vacation pay and sick days that should be reported on the SFP at December 31, 2022 and 2023. (Do not leave any answer field blank. Enter O for amounts.) Liability for vacation pay $ Liability for sick pay $ 2022 14,940 $ $ 2023

Pina Colada Limited began operations on January 2, 2022. Pina Colada employs 9 individuals who work eight-hour days and are paid hourly. Each employee earns 10 paid vacation days and 6 paid sick days annually. Vacation days may be taken after January 15 of the year following the year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additional information is as follows: Actual Hourly Wage Rate Vacation Days Used by Each Employee Sick Days Used by Each Employee 2022 2023 2022 2023 2022 2023 $20.00 $22.00 0 8 3 4 Assume that Pina Colada Limited has chosen not to recognize paid sick leave until it is used, and has chosen to accrue vacation time a expected future rates of pay without discounting. Pina Colada uses the following projected rates to accrue vacation time: Year in Which Vacation Time Was Earned 2022 2023 Projected Future Pay Rates Used to Accrue Vacation Pay $20.75 per hour $22.60 per hour Calculate the amounts of any liability for vacation pay and sick days that should be reported on the SFP at December 31, 2022 and 2023. (Do not leave any answer field blank. Enter O for amounts.) Liability for vacation pay $ Liability for sick pay $ 2022 14,940 $ $ 2023

PAYROLL ACCT.,2019 ED.(LL)-TEXT

19th Edition

ISBN:9781337619783

Author:BIEG

Publisher:BIEG

Chapter4: Income Tax Withholding

Section: Chapter Questions

Problem 8PB

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Barbara Ripa receives 695 for a regular 40-hour week and time and one-half for overtime. For a workweek of 45 hours, compute: a. The regular earnings________ b. The overtime earnings________ c. The total earnings________
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Costa, Inc., recently converted from a 5-day, 40-hour workweek to a 4-day, 40-hour workweek, with overtime continuing to be paid at one and one-half times the regular hourly rate for all hours worked beyond 40 in the week. In this company, time is recorded under the continental system, as shown on the time card on the following page. Barbara Bansta is part of the Group B employees whose regular workweek is Tuesday through Friday. The working hours each day are 800 to 1200; 1230 to 1630; and 1800 to 2000. The company disregards any time before 800, between 1200 and 1230, and between 1630 and 1800, and permits employees to ring in up to 10 minutes late before any deduction is made for tardiness. Deductions are made to the nearest of an hour for workers who are more than 10 minutes late in ringing in. Refer to the time card and compute: a. The daily total hours ..........................................................................___________ b. The total hours for the week ...............................................................___________ c. The regular weekly earnings ................................................................___________ d. The overtime earnings (company rounds O.T. rate to 3 decimal places)___________ e. The total weekly earnings .....................................................................__________
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Cal DiMangino earns 2,875 each month and works 40 hours each week. Compute: a. The hourly rate________ b. The overtime rate at time and one-half_______
R. Herbert of Crestview Manufacturing Co. is paid at the rate of 20 an hour for an eight-hour day, with time-and-a-half for overtime and double-time for Sundays and holidays. Regular employment is on the basis of 40 hours a week, five days a week. At the end of a week, the labor time record shows the following: Because jobs are randomly scheduled for the overtime period, any overtime premium is charged to Factory Overhead. a. Compute Herberts total earnings for the week. b. Present the journal entry to distribute Herberts total earnings. (Note: These single journal entries here and in E3-2, E3-3, E3-4, E3-8 and E3-9 are for the purpose of illustrating the principle involved. Normally, the entries would be made for the total factory payroll plus the administrative and sales payroll.)
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