wk4 cp

bamberry
Home>Homework Answsers>Business & Finance homework help>Accounting homework help
accountingResearch
  • 3 years ago
  • 1
Report issue
files (2)

wk4CP.docx

Gather data from multiple sources and present that data in one to two pages (12-point, double-spaced). Be sure to document your sources. (This is based on the attached file and the case below)

Case

Helen Company’s fiscal year ends on June 30th. Its employees (with at least three months of experience) are entitled to 12 paid sick days annually for each calendar year beginning on January 1st. An employee not taking his or her earned sick days would receive payment thereon on December 31st of that year. How should Helen Company record and measure such a liability as of June 30th?

Case3.edited.docx

1

Case 3.

Name:

Instructor:

Date:

Case 3

The keywords in this case include Helen Company, fiscal year, sick pay, sick leave, calendar year, and December 31st. I believe the term "Helen company" is relevant to this case because the case is about the company. The second term is the fiscal year and I believe it is relevant because it states the duration in which the company should be operational and the period it should record and measure its liability. The third and fourth terms are sick pay and sick leave and I believe they are relevant because they are the reasons why the company should record and measure its liability. The fifth term is calendar year and I believe it is relevant to this case because it provides the duration in which the company should allow their employees to take their sick days and the time they should be compensated. The last is December 31st and I believe it is relevant to this case because it is the date on which the employee should be compensated since they did not take sick off.

Therefore, I think Heather Company should be held responsible and settle the liability because it was supposed to have compensated its employees for unutilized 12 days of paid sick leave from June 30th. This include employees who have been with the company for at least three months. Helen Company should record such liability by keeping a record of all expenses of the paid sick days and any payments made to employees who did not take their sick days. This will allow the company to measure such a liability because it will find out the days that each employee utilized as sick days and the balance. This will allow the company to keep track of the lump sum made and record this information as a component of the total liability for the financial year.