Early Co. offers its employees a bonus equal to 2% of the company's net income. The estimated net income for the year is expected to be $800,000. Prepare the general journal entry to record the estimated employee bonus plan expense.
What will be an ideal response?
| Employee Bonus Expense……………………… | 15,686 |
| Employee Bonus Payable…………………... | 15,686 |
B = 0.02($800,000 ? B)
B = $16,000 ? 0.02B
1.02 B = $16,000
B = $16,000/1.02 = $15,686
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This question contains two parts; be sure to answer both. First, what is the grapevine, and when does the grapevine flourish and thrive? Second, suppose that you manage a small laboratory that develops fragrances (men's colognes, women's perfumes, unisex deodorants). The office grapevine is thriving; employees believe that the company is about to be purchased by a much larger firm, and that the result will be a move to another state, decreased benefits, and massive layoffs. While the company is under negotiations to be purchased, there will be no move or change in benefits based on the purchase. Layoffs could occur, but it's hard to say at this point. Describe several ways that you might get the grapevine under control.
What will be an ideal response?
The maturity value of a 60-day, 9 percent, $2,000 note receivable is
a. $1,970.33. b. $1,820.89. c. $2,029.59. d. $2,180.12.
Use the earned value table for Project Makeready to determine the schedule variance
Activity 7 14 21 28 35 42 49 Plan % Complete Install fixtures 325 250 575 100% Refinish floors 550 85 635 100% Replace doors 350 275 625 100% Complete tiling 1,200 565 1,765 80% Install back door 875 225 1,100 70% Landscaping 200 350 550 25% Monthly Plan 325 800 435 1,475 1,440 425 350 5,250 Monthly Act 550 550 550 1,100 1,650 550 1,100 A) -$1,896 B) -$1,096 C) -$800 D) -$206
Which of the following is NOT an advantage of a sole proprietorship?
A) single taxation B) ease of setup C) unlimited liability D) no separation of ownership and control