Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Sometimes compensation packages include bonuses designed to provide performance incentives to employees. The difficulty a bonus can cause accountants is not an accounting problem, but a math problem. The complication is that the bonus formula sometimes specifies that the calculation of the bonus is based in part on the bonus itself. This occurs anytime the bonus is a percentage of income because expenses are components of income, and the bonus is an expense.Regalia Fashions has an incentive compensation plan through which a division manager receives a bonus equal to 10% of the division's net income. Division income in 2011 before the bonus and income tax was $150,000. The tax rate is 30%.
Required:
1. Express the bonus formula as one or more algebraic equation(s).
2. Using these formulas calculate the amount of the bonus.
3. Prepare the adjusting entry to record the bonus compensation.
4. Bonus arrangements take many forms. Suppose the bonus specifies that the bonus is 10% of the division's income before tax, but after the bonus itself. Calculate the amount of the bonus.
drewery inc. has fixed costs of 50000 and net operating income of 17000. if sales increase by 18 by how much will noi
Foster Corporation issued a $100,000, 10-year, 10 percent bond on January 1, 2010, for $112,000. Foster uses the straight-line method of amortization. On April 1, 2013, Foster reacquired the bonds for retirement when they were selling at 102 on th..
how did mr. mandoff keep his new investments at such a high rate of return and keep paying off investors and giving to
on july 1 gyminny delivery services a acquired a new truck with a list price of 191000. gyminny received a trade in
Why should accountants be concerned about risks inherent in a complex software system such as the operating system?
Transaction analysis various accounts. Prepare an answer sheet with the following column headings.
What is a contra-revenue account? Give two examples of contra-revenue accounts. What is a sales discount? What is the effect of a sales discount on the total sales revenue of the seller?
What is net income assuming $50,000 of stock was issued, and $25,000 of dividends were paid?
job 137 was started and completed during the year. what price would have been charged to the customer if the job
The accounts in the ledger of Mickeys Park Co. are listed in alphabetical order. All accounts have normal balances. Prepare a trial balance and calculate The total of the debits.
A non-profit organization would like you to lead a Web site development proj¬ect for them. The organization has Internet access that includes space on a Web server, but has no experience developing Web pages or Web sites. In addition to creating t..
after the tangible assets have been adjusted to current market prices the capital accounts of harper and kahlil have
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd