Flounder Corporation offers enriched parental benefits to its staff. While the government provides compensation based on Employment Insurance legislation for a period of 12 months, Flounder increases the amounts received and extends the period of compensation. The benefit program tops up the amount received to 100% of the employees salary for the first 12 months, and pays the employee 70% of his or her full salary for another 6 months after the EI payments have stopped. Zeinab Jolan, who earns $54,080 per year, announced to her manager in early June 2020 that she was expecting a baby in mid-November. On October 29, 2020, 9 weeks before the end of the calendar year and Flounders fiscal year, Zeinab applied for and began her 18-month maternity leave. Assume that the Employment Insurance program pays her a maximum of $720 per week for 52 weeks. For the purpose of this question, ignore any tax, CPP, and EI deductions when making payments to Zeinab.

a) Prepare all entries that Flounder Corporation must make during its 2020 fiscal year related to the parental benefits plan in regard to Zeinab Jolan.

Oct 29	Employee Benefit Expense	_______
	Parental Leave Benefits Payable		_______
	Parental Leave Benefits Payable	320
	Cash		320

b) Prepare one entry to summarize all entries that the company will make in 2021 relative to Zeinab Jolans leave.

Parental Leave Benefits Payable	________
Cash		_______

c) Calculate the amount of parental benefits payable at December 31, 2020, and 2021

Parental Leave Benefits Payable 2020: _______

Parental Leave Benefits Payable 2021: ________

d) Explain how these amounts will be shown on Flounders SFP.

	2020	2021
Current Liability	_______	_______
Long-Term Liability	_______	_______