Question

QUES ON This fact pattern provides information for eight questions, Q#1-Q#8. Consultant Salaries: Kinsey Company hired seven consultants on April 10, Year 1. All consultants began working on that same date. The monthly salary amount for these consultants was $4,200 each. Monthly paydays occur on the 20th for the period then ended. By mutual agreement, the first payday on April 20 was for 1/3 of a month. All paydays involved the proper amounts and were paid on the appropriate dates. In late November Year 1, one consultant asked for a one-month advance of her salary for February Year 2. Kinsey agreed to her request and this extra cash was paid to the consultant in the December 20, Year 1, payday. Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save Answers 1 So 888 d 77 F * $ 4 % 5 & 7 6 8 9 R E T Y U F G I J к с V B N M 99

7

Answer 1

Answer is: 333200

Refer to detailed calculation on attached file.

7 20th Company Name - Kinsey company No. of consultants on April to Montély Salary of each Consultant per montana 42.00 Monthly pay day of every month Ax Calculation of Salary paid for April 4200X7X1, 9800 B* Mo Salary paid for Semaining c * As one consultant requested for one month advance and approved by company. Hence salary, paid 4200 poli advance to one consoltant 3 = 323 400 11 months 4200 Xitx

Hence Year 1 Salary Expenses for Consultant will be= A + B i.e. 9800 + 323400 = 333200.

Remarks: Advance salary treated as prepaid expenses & shown in profit & loss account. And this will get add to next year expenses.