ABC Ltd has introduced a new workplace agreement providing employees with 10 days sick leave...
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ABC Ltd has introduced a new workplace agreement providing employees with 10 days sick leave per year. Based on past experience, ABC Ltd has ascertained that, across each staff level, 60% of staff will take the full 10 days; 20% of staff will take 4 days and 10% of staff will take 1 day. ABC processes the payroll on a weekly basis and recognizes the sick leave entitlement as they accrue in accordance with AASB 119 Employee Benefits. Details of the payroll are as follows: Staff level Managerial staff Professional staff Entitlement Accumulating vesting Accumulating non-vesting Weekly payroll $65,000 $70,000 Question I: Which of the following general journal entries would be recorded to reflect the weekly sick leave entitlement for the Managerial staff? A) Dr Sick leave expense $1,708 Cr Sick leave payable $1,708 B) Dr Sick leave expense $2,500 Cr Cash $792 Cr Sick leave payable $1,708 C) Dr Sick leave payable $2,500 Cr Cash $2,500 D) Dr Sick leave expense $2,500 Cr Sick leave payable $2,500 Your answer to Question I: Question II: Which of the following amounts would be recorded to reflect the weekly sick leave entitlement for the professional staff? A) $1,639 B) $1,858 C) $1,912 D) $2,192 E) $2,500 Your answer to Question II:
ABC Ltd has introduced a new workplace agreement providing employees with 10 days sick leave per year. Based on past experience, ABC Ltd has ascertained that, across each staff level, 60% of staff will take the full 10 days; 20% of staff will take 4 days and 10% of staff will take 1 day. ABC processes the payroll on a weekly basis and recognizes the sick leave entitlement as they accrue in accordance with AASB 119 Employee Benefits. Details of the payroll are as follows:
Staff level Managerial staff Professional staff
Entitlement Accumulating vesting Accumulating non-vesting
Weekly payroll $65,000 $70,000
Question I: Which of the following general journal entries would be recorded to reflect the weekly sick leave entitlement for the Managerial staff?
A) Dr Sick leave expense $1,708
Cr Sick leave payable $1,708
B) Dr Sick leave expense $2,500
Cr Cash $792
Cr Sick leave payable $1,708
C) Dr Sick leave payable $2,500
Cr Cash $2,500
D) Dr Sick leave expense $2,500
Cr Sick leave payable $2,500
Your answer to Question I:
Question II: Which of the following amounts would be recorded to reflect the weekly sick leave entitlement for the professional staff?
A) $1,639
B) $1,858
C) $1,912
D) $2,192
E) $2,500
Your answer to Question II:
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