Question
At 30 June 2020, the accountant for FreshMeat Ltd is preparing the financial statements for the year ended on that date. To calculate the annual
At 30 June 2020, the accountant for FreshMeat Ltd is preparing the financial statements for the year ended on that date. To calculate the annual leave payable, the accountant had gathered the following information on employee annual salary weeks leave outstanding:
| Employee | Annual salary |
| Weeks leave outstanding | ||
| David Glade Kevin Cougar Amanda Willigen Steve Barber |
| 200,000 120,000 100,000 80,000 |
|
| 5 3 2 1 |
Required
- Calculate the annual leave payable for FreshMeat Ltd as at 30 June 2020 based on a 52-week year. (2 marks)
- The balance of the annual leave payable before the above calculation was $1,000. Show the general journal entry to record the appropriate balance in the Annual Leave Payable account
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Horngrens Cost Accounting A Managerial Emphasis
Authors: Srikant M. Datar, Madhav V. Rajan
16th edition
134475585, 978-0134475998, 134475992, 978-0134475585
