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    Chapter 19

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    Bella Ronah
    The document contains 20 problems related to accounting for employee benefits such as vacation pay, bonuses, and termination benefits. It provides journal entries to record various transactions such as accruing unused vacation time, paying out bonuses, and calculating liabilities for compensated absences. It also includes multiple choice questions testing understanding of accounting for employee leave and benefits.

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    Chapter 19

    Uploaded by

    Bella Ronah
    107 views4 pages
    The document contains 20 problems related to accounting for employee benefits such as vacation pay, bonuses, and termination benefits. It provides journal entries to record various transactions such as accruing unused vacation time, paying out bonuses, and calculating liabilities for compensated absences. It also includes multiple choice questions testing understanding of accounting for employee leave and benefits.

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    The document contains 20 problems related to accounting for employee benefits such as vacation pay, bonuses, and termination benefits. It provides journal entries to record various transactions such as accruing unused vacation time, paying out bonuses, and calculating liabilities for compensated absences. It also includes multiple choice questions testing understanding of accounting for employee leave and benefits.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    107 views4 pages

    Chapter 19

    Uploaded by

    Bella Ronah
    The document contains 20 problems related to accounting for employee benefits such as vacation pay, bonuses, and termination benefits. It provides journal entries to record various transactions such as accruing unused vacation time, paying out bonuses, and calculating liabilities for compensated absences. It also includes multiple choice questions testing understanding of accounting for employee leave and benefits.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    of 4

    PROBLEM 19-1

    Requirement 1

    1 To record the used vacation wecks:

    Vacation pay expense (1,00 x P3,000) 3,000,000


    Cash 3,000,000

    2 To acerue the unused vacation weeks:

    Vacation pay expense (500x P3,300) 1,650,000


    Accrued vacation pay 1,650,000

    Requirement 2

    1 To record the used vacation wecks:

    Vacation pay expense 3,000,000


    Cash 3,000,000

    2 To acenue the unused vacation weeks:

    No accrual is necessary because non accumulating paid absences are recognized when the absences
    occur and lapse when the entitlement is most used in full.

    PROBLEM 19-2

    1 To record the bonus for 2020

    Bonus expense (8% x 50,000,000) 4,000,000


    Bonus payable 4,000,000

    2 To record the bonus payment on December 31, 2021:

    Bonus payahble 4,000,000


    Cash 4,000,000

    PROBLEM 19-3

    1 To record the bonus for 2020:

    Bonus expense 9,120,000


    Bonus payable 9,120,000

    Maximum possible bonus (12% x 80,000,000) 9,600,000


    Saving through stalf tumover (5% x 9,600,000) (480,000)
    Estimated liability 9,120,000

    2 To record the bonus payment on December 31, 2021, assuming there is no change in the estimated
    liability:

    Bonus payable 9,120,000


    Cash 9,120,000

    PROBLEM 19-5

    Vacation pay 1,100,000


    Sick pay 900,000
    Liability for compensated absences 2,000,000

    PROBLEM 19-7

    Employee 2 (600 x 5 days not taken) 3,000


    Employee 3 (800 x 15 days not taken) 12,000
    Accrued vacation pay 15,000

    PROBLEM 19-8

    Liability for accumulated vacations, December 31, 2020 350,000


    Less: Payment for pre-2020 accrued vacations 200,000
    Balance 150,000

    Vacations carned for work in 2020 300,000


    Adjustment of pre-2020 vacations (150,000 x 10%) 15,000
    Vacation pay expense in 2020 315,000

    PROBLEM 19-9

    Vacation pay expense in 2020 (10,000 x 200 weeks) 2,000,000

    PROBLEM 19-10

    Total wages for 2020 8,600,000


    Vacations actually taken in 2020 160,000
    Nonvacation wages 8,000,000

    Vacation pay eamed in 2020 (8,000,.000/40 x 2) 400,000


    Vacation pay taken in 2020 (160,000)
    Acerued liability 12/31/2020 240,000

    PROBLEM 19-11

    Vacation days in 2020 12


    Vacation days in 2021 12
    Total 24
    Vacation days taken in 2021 (9)
    Vacation days not taken- 12/31/2021 15

    Accruedd liability-12/31/2021 (50 x 15 x 8 hours x P80) 480,000

    PROBLEM 19-12
    Accrued overtime 50,000
    Acenued salaries (3/10 x 900,000) 270,000
    Total accrual 320,000

    PROBLEM 19-13

    Question 1- A

    Vacation pay expense for 2020(35x 10 days x8 hours x P129) 361,200

    Question 2- A

    FIFO
    Vacation days eaned in 2020, 2021 and 2022 30
    Vacation days taken in 2021 (8)
    Vacation days taken in 2022 (10)
    Vacation days not taken (2021 2., 2022 10) 12

    Vacation days camed in 2021 not taken (2x 135 x 8hours x 35 employees) 75,600
    Vacation days carned in 2022 not taken (10x 142.50 x 8x 35 employees) 399,000
    Acerued liability-12/31/20120 474,600

    PROBLEM 19-14

    Question 1- A

    Vacation pay expense for 2020 (50 x 15 days x 8 hours x PI50) 900,000

    FIFO
    Vacation days carned in 2020, 2021 and 2022 (15 x 3) 45
    Vacation days taken in 2021 (13)
    Vacation days taken in 2022 (15)
    Vacation days not taken (2021-2, 2022-15) 17

    Vacation days caned in 2021 not taken (2 x P200 x 8 hours x 50 employees) 160,000
    Vacation days eaned in 2022 not taken (15 x P250x 8 hours x 50 employees) 1,500,000
    Acerued liability December 31, 2022 1,660,000

    PROBLEM 19-15

    Lump sum payments 475,000


    PV of periodic payments 155,000
    Total liability 630,000

    PROBLEM 19-16

    Question 1- A

    Employees leaving before closure (150 x P20,000) 3,000,000


    Employees lcaving until closure (50 x P60,000) 3,000,000
    Total benefit 6,000,000

    Question 2- A

    Termination benefit (200 x P20.000) 4,000,000

    Question 3- A

    Total benefit per employee 60,000


    Termination benefit 20,000
    Short-term benefit per employee 40,000
    Number of employees leaving until closure 50
    Total amount of short-term benefit 2,000,000

    PROBLEM 19-18

    1C
    2D
    3A
    4C
    5A

    PROBLEM 19-19

    1A
    2C
    3D
    4C

    PROBLEM 19-20

    1D
    2C
    3D
    4D
    5D
    6B
    7D
    8B

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