Chavez Co.’s salaried employees earn four weeks’ vacation per year. It pays $156,000 in total employee salaries for 52 weeks but its employees work only 48 weeks. This means Chavez’s total weekly expense is $3,250 ($156,000/48 weeks) instead of the $3,000 cash paid weekly to the employees ($156,000/52 weeks). Record Chavez’s weekly vacation benefits expense.
Answer to relevant QuestionsErik Company offers an annual bonus to employees if the company meets certain net income goals. Prepare the journal entry to record a $15,000 bonus owed to its workers (to be shared equally) at calendar year-end. Motora Systems borrows $137,000 cash on May 15, 2009, by signing a 180-day, 9% notes. 1. On what date does this note mature? 2. Suppose the face value of the note equals $137,000, the principal of the loan. Prepare the ...Tad Newbern, an unmarried employee, works 47 hours in the week ended January 12. His pay rate is $12 per hour, and his wages are subject to no deductions other than FICA—Social Security, FICA—Medicare, and federal income ...Nix Co. entered into the following transactions involving short-term liabilities in 2010 and 2011. 2010 Apr. 22 Purchased $6,000 of merchandise on credit from Wolf Products, terms are 1/10, n/30. Nix uses the perpetual ...Review the chapter’s opening feature about Aaron Kennedy and his start-up company, Noodles & Company. Assume that Aaron is considering expanding his business to open an outlet in Hawaii. Assume the current income statement ...
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