Question 3 (15 marks) Berry Ltd, a newly established manufacturing company, provides its employees with long service leave entitlements of 13 weeks of paid leave for every 10 years of continuous service. As the company has been operating for only 6 years, no employees have become entitled to long service leave. However, the company recognises a provision for long service leave using the projected unit credit approach required by AASB 119/IAS 19. The following summary data is derived from Berry Ltds payroll records and actuarial reports for the year ended 30 June 2020. * Unit credit No of % expected to Average No. of years Yield on (years) employees become entitled annual salary until vesting Treasury bonds 1 150 20 $50,000 9 6% 2 96 25 $55,000 8 6% 3 35 $60,000 7 5% 4 30 50 $65,000 6 5% 60 . Additional information: The estimated annual increase in general wages is 6% p.a. for the next 10 years, reflecting expected inflation. The provision for long service leave for general staff on 30 June 2019 was $160 000. No employees were eligible to take long service leave during the year ended 30 June 2020. . Required: Prepare the journal entries to account for Berry Ltd's provision for long service leave on 30 June 2020. Show all workings and narrations. (15 marks) Question 3 (15 marks) Berry Ltd, a newly established manufacturing company, provides its employees with long service leave entitlements of 13 weeks of paid leave for every 10 years of continuous service. As the company has been operating for only 6 years, no employees have become entitled to long service leave. However, the company recognises a provision for long service leave using the projected unit credit approach required by AASB 119/IAS 19. The following summary data is derived from Berry Ltds payroll records and actuarial reports for the year ended 30 June 2020. * Unit credit No of % expected to Average No. of years Yield on (years) employees become entitled annual salary until vesting Treasury bonds 1 150 20 $50,000 9 6% 2 96 25 $55,000 8 6% 3 35 $60,000 7 5% 4 30 50 $65,000 6 5% 60 . Additional information: The estimated annual increase in general wages is 6% p.a. for the next 10 years, reflecting expected inflation. The provision for long service leave for general staff on 30 June 2019 was $160 000. No employees were eligible to take long service leave during the year ended 30 June 2020. . Required: Prepare the journal entries to account for Berry Ltd's provision for long service leave on 30 June 2020. Show all workings and narrations. (15 marks)