Compute the amount of liability for compensated absences

Assignment Help Accounting Basics
Reference no: EM132565253

Question - ABC Company grants its employees five (5) working days of paid sick leave for each year. Unused sick leave can be carried forward for one (1) calendar year only. On December 31, 2X16, the average unused sick leave of each of its 100 employees is two (2) days. The entity estimates that 80 of its employees will take no more than five-day sick leave during 2X17 and that the remaining 20 employees will take an average of seven (7) days sick leave during 2X17. An employee earns an average daily rate of P500.

1. Compute the amount of liability for compensated absences that ABC Company shall recognize on December 31, 2X16.

2. Prepare the required journal entry for December 31, 2X16.

Reference no: EM132565253

Questions Cloud

Increasing levels of carbon dioxide in our biosphere : Do some research on increasing levels of carbon dioxide in our biosphere and what consequences that will have. Why is carbon dioxide
How much shall be recognized as deferred tax asset : The estimated litigation expense of P500,000 will be deductible in 2X20 when it is expected to be paid. How much shall be recognized as deferred tax asset
Impact on criminal law : Identify 4 constitutional amendments that you believe have had the most impact on criminal law. Why did you choose these particular amendments?
What is the finance lease liability on December : On January 1, 2X18, an entity leased two (2) types of machinery for executive use. What is the finance lease liability on December 31, 2X19
Compute the amount of liability for compensated absences : Compute the amount of liability for compensated absences that ABC Company shall recognize on December 31, 2X16
What was league of friendship : What was the League of Friendship? Explain its role and impact on the Articles of Confederation in American history.
Identify three threats to the auditor independence : You are the audit manager of BBL Associates (BBL), a mid-tier accounting firm. Identify three threats to auditor's independence in relation to the Simpson audit
List key assertions at risk in relation to accounts payable : For each assertion, outline two substantive tests of details to obtain sufficient appropriate audit evidence. List key assertions at risk in relation to account
Topics in texas government-state and local politics : Students will find a current event related to topics in Texas government: state and local politics. Whats a summary analysis, you say?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd