Question: Current Liabilities and Contingencies CPC-1) The controller for P & P Products neglected to have her staff accrue the payroll for the final work week

Current Liabilities and Contingencies

CPC-1) The controller for P & P Products neglected to have her staff accrue the payroll for the final work week in December 2012. The following data should have been considered and accounted for in the P & P Products books.

- Total Payroll = $1,350, 000

- Income taxes to be withheld = $ 150,000

- FICA taxes applicable to the payroll accrual = $28,000

- FUTA taxes on accrued payroll = $4,000

- Total compensated absences related to the payroll = $75,000 vacation time and $85,000 sick time.

- Employees who do not take vacation will receive compensation in lieu of time taken off. Sick time does not vest and if the employee does not used their sick time it is forfeited back to the company. Union dues that should have been withheld from employees payroll = $12, 000.

Required: Journalized all entries that are necessary to accrue the above payroll.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

In January 2010, XYZ began construction on a storage facility for ABC company. The construction was completed on December 10, 2012. The president of XYZ has consulted with the controller regarding...

The controller for P & P Products neglected to have her staff accrue the payroll for the final work week in December 2012. The following data should have been considered and accounted for in the P &...

Problem 1 The controller for P & P Products neglected to have her staff accrue the payroll for the last week in December, 2014. The following data should have been considered and accounted for in P &...

Hi! I need help for this assignment, please let me know if WEEK 6 WILEYCPA Ownership of 51% of the outstanding voting stock of a company would usually result in The use of the cost method. The use of...

Apollo case studies the question is on page 44 Apollo case studies the question is on page 44 Apollo case studies the question is on page 44 APOLLO SHOES, INC. An Audit Case to Accompany AUDITING AND...

Please read the attachment chapters and answer the following questions with at least 50 words. Depreciation discussion What are the various methods of determining depreciation and amortization...

Project 1: Analysis of a 10- K (10%) 1. Locate a 10-K of your choice from the SEC website (www.sec.gov). Present your choice in the conference set up for same in Week #1 for approval by stating the...

There are 3 attachments. The first attachment are the instructions and questions that are to be answered. The following 2 attachments are useful items needed to complete the questions properly....

Why should hospitals report only the net amount of patient service revenue in their Statement of Revenues, Expenses, and Changes in Net Position?

If reserve requirements were eliminated, it would be harder to control interest rates. True, false, or uncertain?

cash, confirmations, deviation, effectiveness, fees, talent 1 . An audit needs to have the correct balance of efficiency and _ _ _ _ _ _ _ _ _ _

Elizabeth Island Airways scher. Ellermalogenal airine serving the New England area, recently suffered a major cras. As a result passengers are considered to be shy choose As there comer when making...

respublicanskie (republican, having their headquarters in the republics, and directly supervising sectors which were focused on local needs such as intrarepublic transportation, and which were...

The leadership had no authority to make independent decisions about using the cooperatives income, alienation of the cooperatives means of production and how the means of production would be used.

the articulation and coordination of a range of production facilities through a central plan;