Classic: Employment Compensation and Employees Essay

Submitted By chrisfan18
Words: 457
Pages: 2
Open Document
EXERCISE 13-8

Salaries and Wages Expense
480,000

Withholding Taxes Payable

80,000 FICA Taxes Payable*

28,040 Union Dues Payable

9,000 Cash

362,960 *[($480,000 – $140,000) X 7.65% = $26,010]

$140,000 X 1.45% = $2,030; $26,010 + $2,030 = $28,040

Payroll Tax Expense
29,440

FICA Taxes Payable

28,040 (See previous computation.)

FUTA Taxes Payable

[($480,000 – $410,000) X .8%)

560 SUTA Taxes Payable

[$70,000 X (3.5% – 2.3%)]

840

EXERCISE 13-5

(a)

2012

To accrue the expense and liability for vacations

Salaries and Wages Expense
8,640

Salaries and Wages Payable

8,640 (1)

To accrue the expense and liability for sick pay

Salaries and Wages Expense
5,184

Salaries and Wages Payable

5,184 (2)

To record sick leave paid

Salaries and Wages Payable
3,456
(3)

Cash

3,456

EXERCISE 13-5 (Continued)

2013

To accrue the expense and liability for vacations

Salaries and Wages Expense
9,360

Salaries and Wages Payable

9,360 (4)

To accrue the expense and liability for sick pay

Salaries and Wages Expense
5,616

Salaries and Wages Payable

5,616 (5)

To record vacation time paid

Salaries and Wages Expense
648

Salaries and Wages Payable
7,776
(6)

Cash

8,424 (7)

To record sick leave paid

Salaries and Wages Expense
144

Salaries and Wages Payable
4,536
(8)

Cash

4,680 (9)

(1)
9 employees X $12.00/hr. X 8 hrs./day X 10 days =
$8,640

(2)
9 employees X $12.00/hr. X 8 hrs./day X 6 days =
$5,184

(3)
9 employees X $12.00/hr. X 8 hrs./day X 4 days =
$3,456

(4)
9 employees X $13.00/hr. X 8 hrs./day X 10 days =
$9,360

(5)
9 employees X $13.00/hr. X 8 hrs./day X 6 days =
$5,616

(6)
9 employees X $12.00/hr. X 8 hrs./day X 9 days =
$7,776

(7)
9 employees X $13.00/hr. X 8 hrs./day X 9 days =
$8,424

(8)
9 employees X $12.00/hr. X 8 hrs./day X (6–4) days =
$1,728

9 employees X $13.00/hr. X 8 hrs./day X (5–2) days =
+2,808
= $4,536
(9)
9 employees X $13.00/hr. X 8 hrs./day X 5 days =
$4,680

Note: Vacation days and sick days are paid at the employee’s current wage. Also, if employees earn vacation pay at different pay rates, a consistent pattern of recognition (e.g., first-in, first-out) could be employed which liabilities have been paid.

EXERCISE 13-5 (Continued)

(b) Accrued liability at year-end:

2012

2013

Vacation Wages Payable

Sick Pay Wages Payable

Vacation Wages Payable

Sick Pay Wages Payable

Jan. 1 balance
$ 0

$ 0

$ 8,640

$1,728

+ accrued
8,640

5,184

9,360

5,616

– paid ( 0)

(3,456)

(7,776)

(4,536)

Dec. 31 balance
$8,640
(1)
$1,728
(2)
$10,224
(3)
$2,808
(4)

(1)
9 employees X $12.00/hr. X 8
Show More

Related Documents: Classic: Employment Compensation and Employees Essay

Discrimination in the Workplace Essay

with the Equal Employment Opportunity Commission, which investigated his claims.” (Houston Chronicle) This was a classic example of discrimination based on the Americans with Disabilities Act. “Title I of the Americans with Disabilities Act of 1990 prohibits private employers, state and local governments, employment agencies, and labor unions from discriminating against qualified individuals with disabilities in job application procedures, hiring, firing, advancement, compensation, job training,…

Words 500 - Pages 2

Essay on Prostitution: Discrimination and Mr Muxumed

discrimination Act (1975), and Race relations Act (1976) were introduced to tackle unfair discrimination during education and employment. In the following years many more anti-discriminatory acts were introduced: · Disability Discrimination Act 1995 · Employment Equality (religion belief) Regulations 2003 · Employment Equality (sexual orientation) Regulations 2003 · Employment Equality (age) Regulations 2006 · The Equality Act (sexual orientation) Regulations 2007 · Sex Discrimination Act 2008…

Words 3943 - Pages 16

Nordstrom Human Resource Paper

Nordstrom Nordstrom’s employees and management are the company’s most valuable resource. An article written in the Seattle PI describes exactly why this is true. It states that, “Nordstrom salespeople make decisions as if managing their own business; they are trusted to do what is right. Everyone else in the company is there to help the sales staff make the sale and please the customer” (Mulady, 2009). The way the employees are treated and valued is a perfect portrayal of the company’s mission…

Words 5440 - Pages 22

Classic Airlines Essay

Classic Airlines’ Marketing Concept Kim Collins MKT/571 January 28, 2013 Colleen M. McGrath Classic Airlines Marketing Concept Even though Classic Airlines continues a profitable business enterprise, decreasing stock prices, and loss of customer confidence, the airlines faces bankruptcy. Classic Airlines withstands longevity doing business for 25 years. This airline demonstrates a presence ranking number five in the world. The company is looking to increase profitability by changing…

Words 961 - Pages 4

Fina 315 Notes Essay

with these issues. Failure to provide an effective internal conflict resolution process could lead to stress, frustration and unethical activity. In order to help employees and managers understand their ethical responsibilities it is good corporate practice to adopt a formal written Code of Conduct that should be given to all employees before they start their job. The third attached article entitled “Resolving Ethical Dilemmas in the Workplace” addresses the types of conflicts that may arise in…

Words 4209 - Pages 17

Approaches Of Hrm

system is a tool to HR which if strategically used can prove a very lucrative for a firm. The reward system as defined by Bratton and Gold 2005 Reward – ‘all the monetary, non-monetary and psychological payments that an organisation provides for its employees in exchange for the work they perform’. The reward system defined by Bratton and Gold makes a very clear view reward system but there are some more aspects which are now incorporated to the reward system. The reward is now not just limited to the…

Words 3288 - Pages 14

swot subway Essay

6. Low startup costs. WEAKNESSES 1. Services are not consistent from store to store. 2. Franchisee is highly dependent on the franchisor. 3. Interior design of the franchises looks old and outdated. 4. Turnover rate of the employees is higher. OPPORTUNITIES 1. Increasing the demand for healthy food. 2. Home meal delivery. 3. Association with Government and movie producers to promote the Subway’s meal. 4. Introduction of drive-thru. THREATS 1. Financial…

Words 3192 - Pages 13

Unit 10 Essay

Unit Ten: Affirmative Action & Sexual Harassment 10.0 Introduction In Unit 9, we looked at employment discrimination, anti-discrimination law, and the burdens placed on women by family responsibilities. We took a factual and historical approach to workplace employment policies, and reflected on the role of work in our lives. In this unit, we will focus on affirmative action and sexual harassment, two of the most hotly debated issues in human resources ethics. There are many philosophical arguments…

Words 4382 - Pages 18

Research: Management and International Assignments Essay

ON INTERNATIONAL ASSIGNMENT: IS EXPATRIATION THE ONLY WAY TO GO? Marilyn Fenwick Working Paper 30/04 May 2004 DEPARTMENT OF MANAGEMENT WORKING PAPER SERIES ISSN 1327–5216 Abstract This research explored variations to traditional international assignment. Interviews with expert informants and a survey of 43 human resource managers investigated whether or not four categories of international assignment identified in a recent European survey are occurring in Australian-based multinational enterprises…

Words 4947 - Pages 20

Unit 5001 Personal Development as a Manager and Leader Essay

Assembly and Referendum. • economic: financial implications, productivity. • social: what is and is not acceptable within the culture • technological: new computer systems or other new technology • legal: changes to employment law, recruitment, visa, new legislation • environmental: the space available, what can or cannot be moved where, recycling, sustainability and corporate social responsibility. In this situation, a PESTLE analysis can be thought of more…

Words 4490 - Pages 18