Question

this is financial Accounting. please provide the working details i can get it. thank you.

Vulture Demolition Ltd has five employees and needs to calculate its Long Service Leave (LSL)
expense for the year ended 30 June 2019. Employees are entitled to 15 weeks LSL after
12 years of service. If employees leave the business after 10 years but before 12 years they are entitled
to be paid out their accumulated LSL. Employees who leave prior to 10 years service receive no LSL
payout. The following details are supplied by the owners:
Name of Employee		Current Salary		Years of Service		Probability LSL will Vest
Phineas Mason		$18,000		4		30%
Herman Schultz		$32,000		6		40%
Jackson Brice		$45,000		9		80%
Yu Lew		$138,000		9		Students to determine
Adrian Toomes		$156,000		15		Students to determine
The inflation rate is predicted to be				2.80%
The interest rate on bonds is:
	6 year government bond yield			3.00%
	5 year government bond yield			2.99%
	4 year government bond yield			2.80%
	3 year government bond yield			2.65%
	2 year government bond yield			2.47%
	1 year government bond yield			2.45%
The balance in the provision account at the beginning of the year was						CR	$18,560	.
Required:
a)	Prepare the journal entires to recognitse the long-service leave expense for 30 June 2019
	Show all workings							10 Marks
b)	Prepare the note disclosure regarding the long-service leave provisions for 30 June 2019.
								5 Marks

Answer 1