Sonic Ltd provides 4 weeks (20 days) of accumulating vested annual leave for 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 Sonic Ltd.'s payroll records for the year ended 30 June 2020. The amounts shown are applicable at 30 June 2020.

Employee category

Base pay/day

$

Annual leave

Balance

1 July 2019 (days)

Accumulated during year (days)

Taken during year (days)

Executives

500

260

220

260

Consultants

350

300

540

600

Managers

400

230

330

360

Admin staff

250

240

230

250

Additional information

After leave taken during the year had been recorded, Sonic Ltd.'s trial balance revealed that the provision for annual leave had a credit balance of $64,125 at 30 June 2020.

2. Prepare the journal entry to account for the annual leave expense at 30 June 2020.

Date

Details

Debit

Credit