Calavaro Ltd commenced operations on 1 July 2019 and had 200 employees. Average salaries were $80,000 per annum for the year. Calavaro Ltd accounts for all recognised employee costs as expenses. Employees are entitled to 13 weeks of long service leave after 10 years of employment.

The following information is based on advice received from actuarial consultants at 30 June 2020.

Number of years unit credit	1 year
Number of years until long service leave is expected to be paid	9 years
probability that long service leave will be taken	50%
Expected increase in salaries (based on inflation)	1.5%
Yield on 9-year high quality corporate bonds at 30/06/2020	10%
Projected $1 salary over 9 years at 1.5% inflation rate	1.1434
Present value of $1 lump sum in 9 years at 10%	0.4241

Required

Determine the obligation for long service leave at 30 June 2020, applying the projected unit credit method in accordance with AASB 119/IAS 19, and prepare the journal entry to account for changes in the provision for long service leave. (5 marks