Bear Island Ltd has weekly payroll of $400,000. The employee receives entitlement of 2 weeks sick leave per year. The sick-leave entitlement is classified as non-vesting. Past experience, ad experience within the industry, suggest that 65 percent of the employees will use their full 2 weeks entitlement each year; 15 percent will take one weeks sick leave each year and 15 percent will take 1 days sick leave each year.

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

Calculations	Total
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-----------------------------------	--------------------------------------
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Total annual sick leave expenses	----------------------------------------------

2. Provide the journal entries necessary each week to recognize the sick-leave entitlement expenses as it accrues.

Debit/Credit	Description	Debit Amount	Credit Amount
----------------------	Sick leave expense	-----------------------	-------------------------
----------------------------	Sick leave payable	----------------------	----------------------------