EMPLOYEE

BENEFITS
SHOR TERM, POST EMPLOYMENT, OTHER LONG TERM AND
TERMINATION BENEFITS
EMPLOYEE BENEFITS HANDOUT 1: SHORT TERM . OTHER LONG TERM ! TERMINATION BENEFITS

PROBLEM 1 :

EARNED : 1500
UNUSED :
500
USED : 1000

ACCUMULATING I VESMHG
1000 WKS ✗ 3000 =
3M → USED

EMPLOYEE BENEFIT EXPENSE 4,650,000 500 Wks ✗ 31300=11650.000 →

UNUSED

ACCRUED LIABILITY 116501000

CASH 3.000.000

NON ACCUMULATING ! NON VESTING

EMPLOYEE BENEFIT EXPENSE 30001000 ACCUMULATING

NON

3,000,000 ↳ ACCRUAL
CASH NO

PROBLEM 2:

ENTRY :

2020 :

EMPWY.tt BENEFIT EXPENSE 801000

ACCRUED 49000
LIABILITY
CASH 31.000

1%0 t
3125 5200
to

•
IF
FIFI IF
•

Sy PEE AYE LIFO Sy PEE AYE

UNUSED LEAVE 10 6 4 LEAVE EARNED 10 10 10

LEAVE TAKEN (7) (9) (6) LEME taken (7) (9) (6)
CANNOT BE CARRIED OVER
• 3 -

3 -2 3 I 4
lyennonuy WMGER BE CARRIED OVER
Can no
LEAVE 10 10 10 →
EARNED
-

UNUSED LEAVE
-
,

↳ CAN BE CARRIED OVER Only FOR

REMAINING 10 7 8 REMAINING 3 I 4
✗ ✗ ✗
1 YEAR
✗ ✗
✗
WAGE 1800 3125 5200 WAGE 1800 3125 5200

ACCRUED LIABILITY 18.000 21875 41600 ACCRUED LIABIUTY 5400 3125 201800

PROBLEM 3

# OF EMPLOYEES : 50

ALL WERE USED

: 10 →
VACATION DAYS

500

WAGE ✗ 400

2001000

Entry :

EMPLOYEE BENEFIT EXPENSE 2001000

CASH 200.000
PROBLEM 4 :

Emmy :

EMPLOYEE BENEFIT EXPENSE 29.000

ACCRUED LIABIUTY 151000

EMPLOYEE 1 EMPLOYEE 2 EMPLOYEE 3 CASH 141000

EARNED 10 15 20

USED ( )
IO ( )
lo (5)
REMAINING - 5 15
✗ ✗ ✗

AVE . WAGE 400 600 800 TOTAL ACCRUED HABIUTY

-
3000 121000 = 151000

PROBLEM 5 :

•
UNUSED 350.000

USED 12001000 )

BAL 1501000

ADJUSTMENT 107 .

151000
EARNED 3001000

3151000
PROBLEM 6:

•
TERMINATION BENEFIT •
SHORT TERM EMPLOYEE BENEFIT

# OF EMPLOYEES to BE TERMINATED : 200 # OF EMPLOYEES STAYING Until CROSURE ! 50

MMMM" " " ° "°°°
TO"
BENEFIT / 40,000M nnmnanon :c
;;%?-
TERMINATION EMPLOYEE Benefit :X
: ✗ 20,000 EMPLOYEE BENEFIT NET of termination

TERMINATION BENEFIT 4001000 SHORT TERM EMPLOYEE BENEFIT 2.000.000

PROBLEM 7 :

•
TERMINATION BENEFIT EXPENSE
6301000

1µm
TOTAL LIABILITY XX

ACCRUED LIABILITY (xx )

,nmon Benin, pen, , ✗✗

NOTE ! AT PRESENT VALUE IF

Entry :
LONG TERM
TERMINATION BENEFIT EXPENSE 585,000

ACCRUED Pension 451000

6301000
LIABILITY FOR TERMINATION