![Horngren's Financial & Managerial Accounting Plus Mylab Accounting With Pearson Etext -- Access Card Package (5th Edition) (miller-nobles Et Al., The Horngren Accounting Series)](https://www.bartleby.com/isbn_cover_images/9780134077345/9780134077345_largeCoverImage.gif)
Horngren's Financial & Managerial Accounting Plus Mylab Accounting With Pearson Etext -- Access Card Package (5th Edition) (miller-nobles Et Al., The Horngren Accounting Series)
5th Edition
ISBN: 9780134077345
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 11, Problem 11.10SE
1.
To determine
Vacation expense: Vacation expense is an estimated expense for the company which the company should pay to the employees as extra salary over the entire year. For example: If an employee works 49 weeks in a year, company should pay 3 weeks’
To calculate: The amount of vacation expense for one month.
2.
To determine
To journalize: Vacation expense for the month.
Expert Solution & Answer
![Check Mark](/static/check-mark.png)
Want to see the full answer?
Check out a sample textbook solution![Blurred answer](/static/blurred-answer.jpg)
Students have asked these similar questions
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
Over 12 years of service: 4 wecks paid vacation
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
R. Auerbach
K. Sposare
T. Fyumo
$350
175
370
15
425
8.
400
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
Thumb Corporation uses the perpetual cost accumulation system. To prepare the entry,
assume that no employee would be on vacation.
Noura Company offers an annual bonus to employees (to be shared equally) if the company meets certain net income goals. Prepare
the journal entry to record a $14,000 bonus owed (but not yet paid) to its workers at calendar year-end.
View transaction list
Journal entry worksheet
<
1
Record the expected bonus costs.
Note: Enter debits before credits.
Date
December
31
General Journal
Debit
Credit
7
Record entry
Clear entry
View general journal
Required: Prepare the journal entries to: (a) distribute the weekly payroll and to (b) ace
the bonus, vacation and holiday pay.
P44 Monthly payroll register of Hanna Institute for January shows the following information:
The salary for administrative employees is P20,000; faculty, P300,000. Hanna shar
50% of the insurance premium per month. Total amount of installment is P10,000 and
P2,500 will be deducted from both departments (admin and faculty) each.
There are 5 faculty members with equal salaries; two of them are most senior and entitled
to avail 2 weeks paid leave every year. Mr. Johnson, one of two senior members, received
bonus of P1,000 for his last year's awesome result.
Required: Journal entries to record payroll on January 31st.
Chapter 11 Solutions
Horngren's Financial & Managerial Accounting Plus Mylab Accounting With Pearson Etext -- Access Card Package (5th Edition) (miller-nobles Et Al., The Horngren Accounting Series)
Ch. 11 - Prob. 1QCCh. 11 - On January 1, 2016, a business borrowed 18,000 on...Ch. 11 - A company sells 180,000 (selling price) of goods...Ch. 11 - Prob. 4QCCh. 11 - Prob. 5QCCh. 11 - Prob. 6QCCh. 11 - Prob. 7QCCh. 11 - Vega Company expects to pay a 4% bonus on net...Ch. 11 - Prob. 9QCCh. 11 - Prob. 10QC
Ch. 11 - Prob. 1RQCh. 11 - What is a current liability? Provide some examples...Ch. 11 - How is sales tax recorded? Is it considered an...Ch. 11 - How do unearned revenues arise?Ch. 11 - What do short-term notes payable represent?Ch. 11 - Coltrane Company has a 5,000 note payable that is...Ch. 11 - Prob. 7RQCh. 11 - Prob. 8RQCh. 11 - Prob. 9RQCh. 11 - Prob. 10RQCh. 11 - What are the two main controls for payroll?...Ch. 11 - When do businesses record warranty expense, and...Ch. 11 - Prob. 13RQCh. 11 - Prob. 14RQCh. 11 - Prob. 15RQCh. 11 - Determining current versus long-term liabilities...Ch. 11 - Prob. 11.2SECh. 11 - Prob. 11.3SECh. 11 - Accounting for a note payable On December 31,...Ch. 11 - Prob. 11.5SECh. 11 - Prob. 11.6SECh. 11 - Computing payroll amounts considering FICA tax...Ch. 11 - Prob. 11.8SECh. 11 - Prob. 11.9SECh. 11 - Prob. 11.10SECh. 11 - Prob. 11.11SECh. 11 - Accounting treatment for contingencies Fernandez...Ch. 11 - Prob. 11.13SECh. 11 - Recording sales tax Consider the following...Ch. 11 - Prob. 11.15ECh. 11 - Recording and reporting current liabilities...Ch. 11 - Journalizing current liabilities Erik OHern...Ch. 11 - Prob. 11.18ECh. 11 - Recording employer payroll taxes and employee...Ch. 11 - Prob. 11.20ECh. 11 - Prob. 11.21ECh. 11 - Prob. 11.22ECh. 11 - Prob. 11.23ECh. 11 - Prob. 11.24ECh. 11 - Prob. 11.25APCh. 11 - Prob. 11.26APCh. 11 - Journalizing liability transactions T he following...Ch. 11 - Journalizing liability transactions The following...Ch. 11 - Prob. 11.29APCh. 11 - Prob. 11.30BPCh. 11 - Prob. 11.31BPCh. 11 - Prob. 11.32BPCh. 11 - Prob. 11.33BPCh. 11 - Prob. 11.34BPCh. 11 - Prob. 11.35CPCh. 11 - Prob. 11.1CTDCCh. 11 - Sell-Soft is the defendant in numerous lawsuits...Ch. 11 - Prob. 11.1CTEICh. 11 - Derails about a company's liabilities appear in a...Ch. 11 - Prob. 11.1CTCA
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Accounting for bonus and vacation pay Cathy Muench a factory worker, earns 1,000 each week. In addition, she will receive a 4,000 bonus at year-end and a four-week paid vacation. Prepare the entry to record the weekly payroll and the costs and liabilities related to the bonus and the vacation pay, assuming that Muench is the only employee.arrow_forwardWages Payable Denton Corporation employs 50 workers in its plant. Each employee is paid $10 per hour and works seven hours per day, Monday through Friday. Employees are paid every Friday. The last payday was Friday, September 19. Required Compute the dollar amount of the weekly payroll. Prepare the journal entry on Friday, September 26, for the payment of the weekly payroll. Denton prepares monthly financial statements. Prepare the adjusting journal entry on Tuesday, September 30, the last day of the month. Prepare the journal entry on Friday, October 3, for the payment of the weekly payroll. Will net income for the month of September be understated or overstated if Denton doesnt bother with an adjusting entry on September 30? Explain your answer.arrow_forwardNoura Company offers an annual bonus to employees (to be shared equally) if the company meets certain net income goals. Prepare the journal entry to record a $14,000 bonus owed (but not yet paid) to its workers at calendar year-end. View transaction list Journal entry worksheet < 1 Record the expected bonus costs. Note: Enter debits before credits. Date December 31 General Journal Debit Credit Clear entry View general journal Record entryarrow_forward
- Read following information to answer Question no. 6 and 7 Eva Itd. has three employees who are paid on an hourly basis. They receive a wage of 12 times the regular hourly rate for work in excess of 40 hours. Payroll data for the first week ended January 6, 2021, is given below. Hours Worked Emplovee Adam Hourly Rate $12.00 Union Fund $10.00 43 Anna 45 14.00 13.00 Era 46 13.00 7.00 The applicable taxes include: FICA 7.65%; state income taxes 1.5%; state unemployment taxes 5.4%; federal unemployment 0.8%; and Federal Income Tax. All employees are married. Adam claims 2 withholding allowances; Anna claims 5 allowances and Era claims 3 withholding allowances. (Federal Income tax table is given at the end of paper). Question No. 6 Prepare a payroll register for the weekly payroll. Question No. 7 (a) Journalize the payroll on January 6, 2021. (b) Journalize the accrual of employer payroll taxes on January 6, 2021. (c) Journalize the payment of the payroll on January 12, 2021.arrow_forwardTake me to the text Sampson Hotel has three employees who are paid on an hourly basis, plus time and one half for hours in excess of 44 hours per week. Payroll information for the week ending August 14, 2020 is listed below. Employee Hours Worked Hourly Rate Income Tax CPP ΕΙ B. Penguin $52.65 $24.11 $8.32 J. Michelle $64.44 $30.30 $10.18 T. Cruise $66.80 $31.54 $10.55 Do not enter dollar signs or commas in the input boxes. Round your answers to 2 decimal places. J. Michelle $ a) Calculate gross pay for each employee and the amount the employer will have to pay for CPP and El. Employee Gross Employer CPP Employer El B. Penguin $ T. Cruise Total $ Aug 14 39 36 40 $ Record payroll $13.50 $17.90 $16.70 $ $ Aug 31 $ $ b) Prepare the journal entries for the August 14 payroll and the employer's portion of payroll. Employees will not be paid until next week. For transactions with more than one debit or more than one credit, enter the debit accounts in alphabetical order followed by credit…arrow_forwardThe following information about the payroll for the week ended December 30 was obtained from the records of Pharrell Co.: Salaries: Deductions: $402,000 Sales salaries Income tax withheld $135,975 Social security tax withheld 46,620 Warehouse salaries 210,000 Office salaries Medicare tax withheld 165,000 11,655 Retirement savings $777,000 17,094 Group insurance 13,986 $225,330 Tax rates assumed: Social security, 6% Medicare, 1.5% State unemployment (employer only), 5.4% Federal unemployment (employer only), 0.6%arrow_forward
- Noura Company offers an annual bonus to employees (to be shared equally) if the company meets certain net income goals. Prepare the journal entry to record a $15,000 bonus owed (but not yet paid) to its workers at calendar year-end.arrow_forwardPART A:Silver Records has 4 employees who are paid on the 1st and 15th of each month for the work they performed in the preceding half-month. At November 30, each employee is owed gross pay of $2,250, but each one must have 10% of their pay withheld for income taxes. Each must also make CPP contributions of 5.1% of their gross pay and pay EI premiums of 1.62% of their gross pay. Required: Prepare a single journal entry required to record the accrual of payroll on November 30 Prepare the journal entry to record the related employer’s liability on November 30 PART B:Superb Industries borrowed money by issuing a $30,000, 6%, 10-year bond. The Assume that Superb Industries issued the bond on April 1, 2021 at a price of $27,868. The market interest rate on April 1 was 7%. Superb’s accounting year ends on September 30. Required:Journalize the following transactions for Superb Industries: Issuance of the bonds on April 1, 2021 Accrual of interest expense and amortization of bonds on September…arrow_forwardJerome Company has 35 employees who work 8 hours a day and are paid hourly.On January 1, 2018, the entity began a program of granting the employees 10 days ofpaid vacation each year. Vacation days earned in 2018 may first be taken on January 1,2019.Year Hourly wage Vacation daysearned by eachemployee Vacation days usedby each employee2018 129 10 02019 135 10 82020 142.50 10 1015. What is the vacation pay expense for 2018?a. 0b. P361,200c. P378,000d. P344,40016. What is the accrued liability on December 31, 2020?a. P474,600b. P453,600c. P399,000d. P478,800 17. What is the accrued liability on December 31, 2020 assuming the policy is to accrueliability at the end of each year at the wage rate for that year?a. P474,600b. P453,600c. P399,000d. P478,800 Provide SOLUTIONarrow_forward
- please prepare the journal entries 10. Paid $162,000 for salary up to 9th March (Tuesday). All employees work a five-day week and are paid every four weeks on the following Wednesday, based on the number of days they have worked in the last four weeks. Employees are entitled to full pay on public holidays but not on Saturday and Sunday. The employees receive a total salary of $40,500 for a five-day work week. 12. Received payments from Vinga Limited, for the March sales. 13. Acquired $150,000 toy musical instruments by signing a 90-day, 5% notes payable. 16. Queenie Company Limited, a customer, has financial difficulties and unable to pay the outstanding balance of $200,000. The company has a long-term relationship with Queenie, and agreed to accept a 12%, 45-day notes fromthe customer to settle the outstanding balance. 17. Share dividends were distributed. Shareholders on the register of the company on 6 March 2021 are entitled to receive the dividend shares. 21. Paid all dividends…arrow_forwardInstructions Nakajima Company provides its employees with vacation benefits and a defined contribution pension plan. Employees earned vacation pay of $20,000 for the period. The pension plan requires a contribution to the plan administrator equal to 6% of employee salaries. Salaries were $244,000 during the period, and the full amount due was contributed to the pension plan administrator. Chart of Accounts CHART OF ACCOUNTS Nakajima Company General Ledger Required: On December 31, provide the journal entry for the (a) vacation pay on page 11 of the journal and (b) pension benefit on page 12 of the journal. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. ASSETS 110 Cash 111 Accounts Receivable 112 Interest Receivable 113 Notes Receivable 115…arrow_forwardRequired: Prepere the Joumal entries to: (a) distribute the weekly the bonus, vacation and holiday pay. rue R4 Monthly payroll register of Hanna Institule for January shows the following information:. The salary for administrative employees is P20,000; faculty, P300,000. Hanna shareo P2,500 will be deducted from both departments (admin and faculty) each. There are 5 faculty members with equal salaries; two of them are most senlor and entitler to avail 2 weeks pald leave every year. Mr. Johnson, one of two senior members, received bonus of P1,000 for his last year's awesome result. Required: Journal entries to record payroll on January 31st.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage LearningCentury 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:CengagePrinciples of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage Learning
- Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage LearningCollege Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage
![Text book image](https://www.bartleby.com/isbn_cover_images/9781305087408/9781305087408_smallCoverImage.gif)
Principles of Cost Accounting
Accounting
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337619783/9781337619783_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781305654174/9781305654174_smallCoverImage.gif)
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
How JOURNAL ENTRIES Work (in Accounting); Author: Accounting Stuff;https://www.youtube.com/watch?v=Y-_Q3rANyxU;License: Standard Youtube License