please help. Thanks 1Sw how the preceding information erty-tax-related entries f
ID: 2532311 • Letter: P
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please help. Thanks
1Sw how the preceding information erty-tax-related entries for Rosen tor t Compensated Absences Rexallo Co cach s to permitesRcvwould or the period July 1, 2016, to June 30, 2017 policy is to permit cach employec days o for 2 years, 9-8 9.4 Dece orked Ihe sick leave, if not used, accumulates to a 24-day ma eave. Rexallo prefers to record the liability for compensa reported on Rosen's December 31, 2016, balance sheet. mpany begins business on January 2, 20 16, with 15 employees. Its com paid, sick leave each year and 1 ½ days of paid vacation leave P mployee may request additional compensation in lieu of ta absences on a quarterly basis. Assum at any time after a 1 year period, the ing paid vacation l that the gross salaries for each employee are $100 per day reque The following selected events take place during the first two quarters ot o de t . On March 31, 2016, the quarterly liability for compensated absences is . On April 30, 2016, the following $45,000 be ized from Rexallo's records: nonthly payroll, including paid vacation and sick leave, is summar- c Time Worked Payroll for Vacation Taken Sick Leave Taken Salaries $42,000 $1,800 $1,200 On June 30, 2016, the quarterly liability for compensated absences is to be recorded. Required: 1. Prepare journal entries to record the preceding events, ignoring payroll taxes and assuming that both sick leave and vacation time meet the requirements of GAAP for accrual. Prepare a partial interim balance sheet as of June 30, 2016, to disclose the liability created in Requir ement 1. . Discuss the underlying conceptual basis of accounting for compensated absences.Explanation / Answer
44,550
As repeated to june
On 31st march, 2016, the quaterly for compensated absences to be recorded: Compensated on Sick leave: yearly 6 days i.e.., monthly average 0.5 day so quaterly over 15 employee = 15*0.5*3 Tht comes around 22.5 days So leave compensation(22.5*100)= 2,250 Compensated on Vacation leave: 1.5 day per month so, 1.5*15*3= 68 So Leave Compensation(68*100)= 6800 So totally(2250+6800) = 9,050 On April 30, 2016, Salaries: Time worked 42,000 Vacation taken 1,800 Sick leave taken 1,200 Sick leave paid up to 2250/3=750 (-) Sick leave up to 750 only allowed -45044,550
As repeated to june
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