Bear Island Ltd. has a weekly payroll of $ 300,000. The employees receive entitlements to two weeks sick leave per year. The sick leave entitlements are classified as non-vesting. Past experience and experience within the industry, suggest that 60 per cent of employees will use their full two weeks entitlement each year; 20 per cent of employees will take one week's sick leave each year; 10 per cent of employees will take one day's sick leave each year.

Needs to answer the followings;

a) Calculate the expected annual sick leave expense for Bear Island Ltd. (on the basis of average salaries)

b) Provide the journal entries necessary to recognise the sick leave entitlement expense as it accrues.

c) Explain how your answer to part a) and b) above would change if;

1. The sick leave was vesting
2. the sick leave was non-accumulating and non-vesting.