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Four Seasons Total Landscaping Ltd provides long service leave for its retail staff. Long service leave entitlement is determined as 13 weeks of paid leave
Four Seasons Total Landscaping Ltd provides long service leave for its retail staff. Long service leave entitlement is determined as 13 weeks of paid leave for 10 years of continued service. The following infomation is obtained from Four Seasons Total Landscaping Ltd.'s payroll records and actuarial reports for its retail staff as at 30 June 2022. Unit credit (years) No. of employees No. of years until vesting % expected to become entitled 30 40 1 90 9 Annual salary per employee $45 000 $45 000 $45 000 $45 000 Yield on HQ corporate bonds 10% 9% 9% 9% 8 2 3 80 60 40 60 7 4 70 6 Additional information The estimated annual increase in retail wages is 3% p.a. for the next 10 years, reflecting expected inflation. The provision for long service leave for retail staff as at 30 June 2021 was DR $22 000. No employees were eligible to take long service leave during the year ended 30 June 2022. Required Prepare the journal entry to account for Four Seasons Total Landscaping Ltd.'s provision for long service leave as at 30 June 2022. Show all workings
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