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Required : Prepare the general journal entry(ies) in the books of Addison Ltd for the year ended 30 June 2020 to provide for long-service leave
Required : Prepare the general journal entry(ies) in the books of Addison Ltd for the year ended 30 June 2020 to provide for long-service leave for its employees in accordance with the requirements of AASB 119 .
The employees of Addison Ltd are entitled to 13 weeks' long-service leave after 15 years' continuous service. The following information has been compiled for calculating the liability for long-service leave as at 30 June 2020. Years of service as at Number of employees as at 30 June 2020 30 June 2020 for 2019/2020 Aggregate annual salaries Aggregate projected annual salaries when eave is due Probability of becoming unconditionally entitled to long-service leave $550000 240000 70000 80000 $1040000 $940000 340000 180000 0.35 0.90 1.00 1.00 4 28 12 24 2* 80000 76 $1540000 As at 30 June 2020, the two employees with 16 years' service had not taken any long-service leave t Includes the salaries earned during 2019/2020 by employees who resigned during 2019/2020Step by Step Solution
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