In: Accounting
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 |