Question
14. Shelley Ltd pays its salaries fortnightly in arrears. The next pay day is Thursday 2 July. The fortnightly salary expense is $30,000 of which
14. Shelley Ltd pays its salaries fortnightly in arrears. The next pay day is Thursday 2 July. The fortnightly salary expense is $30,000 of which $ 10 000 is retained to pay the Australian taxation office on behalf of the employees. Payments to the ATO are made every second Monday, with the next payment being made on Monday 6 July. Shelley Ltd.s reporting period ends on 30 June
Required
Provide the journal entries in the books of Shelley Ltd for:
a 30 June
b 2 July
c 6 July
15. Jerry Lopez works for Lightning Bolt Ltd. His annual salary is $ 100,000 and he is paid weekly. As part of his employment agreement, he is entitled to four weeks annual leave each year. He receives a leave loading of 17.5percent.
Required
a Provide the weekly journal entries to record the recognition of jerry Lopezs annual leave entitlements
b Provide the appropriate journal entries, assuming that jerry Lopez takes two weeks annual leave after being employed for one year and assuming that the tax deducted from the payment for the two weeks is $ 1200
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