Accounting for profit‐sharing arrangements  LO2 Wellington Ltd has a profit‐sharing arrangement in which 1% of profit for the period is payable to employees, paid 3 months after the end of the reporting period. Employees’ entitlements under the profit‐sharing arrangement are subject to their continued employment at the time the payment is made. Based on past staff turnover levels, it is expected that 95% of the share of profit will be paid. Wellington Ltd’s profit for the period was $70 million. Required Prepare a journal entry to record Wellington Ltd’s liability for employee benefits arising from the profit‐sharing arrangement at the end of the reporting period.