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Harman [31]
3 years ago
11

On January 1, 2021, G Corporation agreed to grant all its employees two weeks paid vacation each year, with the stipulation that

vacations earned each year can be taken the following year. For the year ended December 31, 2021, G's employees each earned an average of $800 per week. A total of 500 vacation weeks earned in 2021 were not taken during 2021. Wage rates for employees rose by an average of 5 percent by the time vacations actually were taken in 2022. What is the amount of G's 2022 salaries expense related to 2021 vacation time?
Business
1 answer:
Julli [10]3 years ago
6 0

Answer: $20,000

Explanation: This question deals with Compensated Absence.

A compensated absence refers to paid holidays and other paid time off. According to accounting principles, expenses are recognized in the same period they are incurred. When it comes to compensated absences that are deferred to a later year (or period), the amount must be recorded as a liability in the year they are incurred.

Because of this, $40,000 (an average of $800 per week for a total of 500 vacation weeks) will be charged to 2021 expense as a liability.

The amount of salaries expense related to 2022 compensated absence is the average 5% pay rise in 2022.

The amount is therefore 5% X $800 X  500 weeks = $20,000

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"A customer has an existing margin account and wants to write five covered calls against 500 shares of stock in the account. The
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For a Global Strategy, Group of answer choices products tend to be customized to the local market. strategic decisions are decen
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3 0
3 years ago
The ________ type of recruitment strategy uses physical and/or psychological pressure on potential members and threatens that ei
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3 0
3 years ago
Holiday Shipping Express is considering a project that will require $28,000 in net working capital and $87,000 in fixed assets.
____ [38]

Answer:

the operating cash flow is $17,820

Explanation:

The computation of the operating cash flow is shown below;

Annual depreciation = $87,000 ÷5

= $17,400

Now

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= (sales - cash costs - depreciation) × (1 - tax rate) + depreciation expense

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= $420 + $17,400

= $17,820

hence, the operating cash flow is $17,820

7 0
3 years ago
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