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Bear Island Ltd has a weekly payroll of $400,000. The employees receive entitlements to 2 weeks' sick leave per year. The sick leave entitlements are
Bear Island Ltd has a weekly payroll of $400,000. The employees receive entitlements to 2 weeks' sick leave per year. The sick leave entitlements are classified as non-vesting. Past experience, and experience within the industry, suggest that 55 percent of employees will use their full 2 weeks entitlement each year; 15 percent of employees will take 1 weeks' sick leave each year, and 10 percent of employees will take 2 days sick leave each year. (8 marks) Required: a) Calculate the expected annual sick leave expense for Bear Island Ltd (on the basis of average salaries) Calculations Total Entor calculation form Encor formulares Brito calculation formula Entor formulare Entor calculation form Enteros Total annual Sick Leave expense Enter grand total b) Provide the journal entries necessary each week to recognise the sick-leave entitlement expense as it accrues. Debit/Credit Description Debit Amount Credit Amount Enter amount Enter amount
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