Swifty Company began operations on January 2, 2019. It employs 11 individuals who work 8-hour days and are paid hourly. Each employee earns 10 paid vacation days and 6 paid sick days annually. Vacation days may be taken after January 15 of the year following the year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additional information is as follows.
|
Actual Hourly |
Vacation Days Used |
Sick Days Used |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
2019 |
2020 |
2019 |
2020 |
2019 |
2020 |
|||||||
| $7 | $8 | 0 | 9 | 4 | 5 | |||||||
Swifty Company has chosen to accrue the cost of compensated absences at rates of pay in effect during the period when earned and to accrue sick pay when earned.
Prepare journal entries to record transactions related to
compensated absences during 2019 and 2020. (If no entry
is required, select "No Entry" for the account titles and enter 0
for the amounts. Credit account titles are automatically indented
when amount is entered. Do not indent
manually.)
|
Date |
Account Titles and Explanation |
Debit |
Credit |
|---|---|---|---|
|
2019 |
enter an account title to accrue the expense and liability for vacations |
enter a debit amount |
enter a credit amount |
|
enter an account title to accrue the expense and liability for vacations |
enter a debit amount |
enter a credit amount |
|
|
(To accrue the expense and liability for vacations) |
|||
|
enter an account title to accrue the expense and liability for sick pay |
enter a debit amount |
enter a credit amount |
|
|
enter an account title to accrue the expense and liability for sick pay |
enter a debit amount |
enter a credit amount |
|
|
(To accrue the expense and liability for sick pay) |
|||
|
enter an account title to record payment for compensated time when used by employees |
enter a debit amount |
enter a credit amount |
|
|
enter an account title to record payment for compensated time when used by employees |
enter a debit amount |
enter a credit amount |
|
|
(To record payment for compensated time when used by employees) |
|||
|
2020 |
enter an account title to accrue the expense and liability for vacations |
enter a debit amount |
enter a credit amount |
|
enter an account title to accrue the expense and liability for vacations |
enter a debit amount |
enter a credit amount |
|
|
(To accrue the expense and liability for vacations) |
|||
|
enter an account title to accrue the expense and liability for sick pay |
enter a debit amount |
enter a credit amount |
|
|
enter an account title to accrue the expense and liability for sick pay |
enter a debit amount |
enter a credit amount |
|
|
(To accrue the expense and liability for sick pay) |
|||
|
enter an account title to record vacation time paid |
enter a debit amount |
enter a credit amount |
|
|
enter an account title to record vacation time paid |
enter a debit amount |
enter a credit amount |
|
|
enter an account title to record vacation time paid |
enter a debit amount |
enter a credit amount |
|
|
(To record vacation time paid) |
|||
|
enter an account title to record sick leave paid |
enter a debit amount |
enter a credit amount |
|
|
enter an account title to record sick leave paid |
enter a debit amount |
enter a credit amount |
|
|
enter an account title to record sick leave paid |
enter a debit amount |
enter a credit amount |
|
|
(To record sick leave paid) |
Compute the amounts of any liability for compensated absences
that should be reported on the balance sheet at December 31, 2019
and 2020.
|
2019 |
2020 |
|||
|---|---|---|---|---|
|
Vacation Wages Payable |
$enter a dollar amount | $enter a dollar amount | ||
|
Sick Pay Wages Payable |
$enter a dollar amount | $enter a dollar amount |
In: Accounting
Question 11
--/40
View Policies
Current Attempt in Progress
Flounder Inc., a greeting card company, had the following statements prepared as of December 31, 2020.
|
FLOUNDER INC. |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
12/31/20 |
12/31/19 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Cash |
$5,900 |
$6,900 |
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|
Accounts receivable |
61,400 |
50,800 |
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|
Short-term debt investments (available-for-sale) |
35,000 |
17,800 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Inventory |
40,000 |
59,400 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Prepaid rent |
5,000 |
3,900 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Equipment |
155,200 |
129,000 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Accumulated depreciation—equipment |
(35,000 |
) |
(25,000 |
) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Copyrights |
45,600 |
49,900 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Total assets |
$313,100 |
$292,700 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Accounts payable |
$46,300 |
$39,800 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Income taxes payable |
3,900 |
6,100 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Salaries and wages payable |
7,900 |
3,900 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Short-term loans payable |
8,000 |
10,100 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Long-term loans payable |
60,100 |
68,400 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Common stock, $10 par |
100,000 |
100,000 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Contributed capital, common stock |
30,000 |
30,000 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Retained earnings |
56,900 |
34,400 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Total liabilities & stockholders’ equity |
$313,100 |
$292,700 |
Question 11 --/40 View Policies Current Attempt in Progress Flounder Inc., a greeting card company, had the following statements prepared as of December 31, 2020.
|
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In: Accounting
Myers Company uses a flexible budget for manufacturing overhead
based on direct labor hours. Variable manufacturing overhead costs
per direct labor hour are as follows.
| Indirect labor | $1.00 | |
|---|---|---|
| Indirect materials | 0.70 | |
| Utilities | 0.40 |
Fixed overhead costs per month are Supervision $4,000, Depreciation
$1,200, and Property Taxes $800. The company believes it will
normally operate in a range of 7,000–10,000 direct labor hours per
month.
Assume that in July 2020, Myers Company incurs the following
manufacturing overhead costs.
|
Variable Costs |
Fixed Costs |
|||||
|---|---|---|---|---|---|---|
| Indirect labor | $8,800 | Supervision | $4,000 | |||
| Indirect materials | 5,800 | Depreciation | 1,200 | |||
| Utilities | 3,200 | Property taxes | 800 | |||
(a) Prepare a flexible budget performance report,
assuming that the company worked 9,000 direct labor hours during
the month. (List variable costs before fixed
costs.)
(b) Prepare a flexible budget performance report, assuming that the company worked 8,500 direct labor hours during the month. (List variable costs before fixed costs.)
In: Accounting
Internal and external corporate governance provisions and activities can take many forms, including a classified board. Which of the following best describes this practice?
a. This practice encourages the classification of board members as insiders or outsiders, depending upon their role or relationship with the company.
b. This practice requires that only a fraction of a firm’s board of directors will be elected in each election.
c. This practice requires that 100% of the members of a firm’s board of directors be elected in each election.
If you were making recommendations to repair a dysfunctional board of directors, which of the following practices would you suggest be implemented? Check all that apply.
a. Senior management’s compensation should include cash and stock options.
b. The CEO should delegate the signing of the company’s federal income tax return to the CFO.
c. The company’s charter should make hostile takeovers easier to accomplish.
d. Members serving on the board’s audit committee should be “independent.”
In: Finance
answer questions about AMAZON
1. What industry does the firm operate in? Examine the firm’s
past and future position within the industry. Is it a leader? What
percent market share does it hold? Describe the services and
products that the firm produces.
2. Who are the company’s important managers (aka: insiders) CEO,
CFO, etc.? What is their experience? Is it applicable to their
current position within the firm? Are they owners of the firm’s
stock/bonds? How are they compensated? Are they buyers or sellers
of the firm’s stock/bonds?
3. 4. Explore the Company 10-K (Annual Report) and find its
Income Statement, Balance Sheet and Statement of Cash Flows. From
the firm’s financial statements, calculate the following ratios: (
Show calculations and indicate year)
A. Firm Liquidity
1. Current Ratio
2. Acid-Test Ratio
3. Average Collection Period
4. Accounts Receivable Turnover
5. Inventory Turnover
In: Finance
Adventures in Wild Life conducts tours of wildlife reserves around the world. They have recently purchased a new lodge in Adak, Alaska, utilizing a 4% mortgage from Bank of Alaska. As part of the agreement they must provide an annual report showing they are achieving a current ratio of 1.2 or better. In order to ensure they achieve this ratio, the CEO requested the CFO to reclassify the long-term debt investments into brokerage accounts to allow them to sell them soon. The adjustments were done knowing the company was not planning on selling these long-term investments. The economy took a downturn and the business saw revenues drop more than 60%.
In: Accounting
answer questions about AMAZON (2 pages)
1. What industry does the firm operate in? Examine the firm’s
past and future position within the industry. Is it a leader? What
percent market share does it hold? Describe the services and
products that the firm produces.
2. Who are the company’s important managers (aka: insiders) CEO,
CFO, etc.? What is their experience? Is it applicable to their
current position within the firm? Are they owners of the firm’s
stock/bonds? How are they compensated? Are they buyers or sellers
of the firm’s stock/bonds?
3. 4. Explore the Company 10-K (Annual Report) and find its
Income Statement, Balance Sheet and Statement of Cash Flows. From
the firm’s financial statements, calculate the following ratios: (
Show calculations and indicate year)
A. Firm Liquidity
1. Current Ratio
2. Acid-Test Ratio
3. Average Collection Period
4. Accounts Receivable Turnover
5. Inventory Turnover
In: Finance
The chain of custody is very important to fraud investigations to ensure the validity of the data (Hopwood, Leiner, & Young, 2012). How do we ensure the chain of custody and what does it mean in various circumstances?
For instance, let’s consider a fraud is suspected in company A. The Administrative Assistant has been given far too much access as she can back post, make journal entries, create unique invoices (on her computer), mail those invoices and also receipt the money when it comes in to pay them. Among the many other permissions she holds she is the safe-keeper of the signature stamps of the CEO, Controller and President and she reconciles the bank and cash account. Thus, not only is there a lot of physical evidence to locate and document there may be items on her computer.
Should the investigator start to examine the computer contents for further evidence? Why or why not and how should it be handled if your answer is no.
In: Finance
A sunscreen company is attempting to improve upon their formula so that it lasts in water longer. They have 4 lead scientists who each came up with different formulas. In order to see if there is a difference in the time the sunscreen lasts the CEO collects a random sample of each of the four sunscreens the data is shown below. Test the claim that at least one sunscreen has a different lifespan in water at a 0.05 level of significance.
| Sunscreen A | Sunscreen B | Sunscreen C | Sunscreen D |
| 61 | 38 | 49 | 71 |
| 82 | 34 | 52 | 80 |
| 79 | 69 | 52 | 82 |
| 68 | 53 | 30 | 78 |
| 63 | 77 | 53 | 49 |
| 66 | 39 | 55 | 65 |
The hypotheses for this ANOVA test would be:
H0:μA=μB=μC=μDH0:μA=μB=μC=μD
HA:HA: At least one mean is different. (claim)
α=0.05α=0.05
Complete the ANOVA table below: (round answers to 3 decimal places)
In: Statistics and Probability
In: Accounting