Harry Ltd provides 4 weeks (20 days) of accumulating vested annual leave for the employees each year of service. The company policy is that annual leave must be taken within 6 months of the end of the period in which it accrues. Annual leave is paid at the base salary rate (which excludes commissions, bonuses and overtime). A 17.5% loading is applied to annual leave payments.

The following summary data is derived from Harry Ltd.s payroll records for the year ended 30 June 2020. Base pay rates have increased during the year. The amounts shown are applicable at 30 June 2020:

Employee category	Base pay/day $	Annual leave
		Balance b/d 1 July 2019 (days)	Accumulated during year (days)	Taken during year (days)
Managers	440	100	200	260
Sales staff	220	150	600	630
Office workers	110	120	400	387
Other	100	60	200	240

Additional information

After leave taken during the year had been recorded, Harry Ltds trial balance revealed that the provision for annual leave had a debit balance of $262,460 at 30 June 2020.

Required:

1. Prepare journal entries to account for the liability for annual leave at 30 June 2020. (2 marks)

Using Australian Accounting Standard System - AASB